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An airline has three different types of aircraft in their fleet. The seating capacity and operating costs for the three different aircraft are as shown
An airline has three different types of aircraft in their fleet. The seating capacity and operating costs for the three different aircraft are as shown below: The small aircraft for example has 150 seats, therefore we can sell no more than 150 tickets per flight if we schedule the small aircraft. The incremental operating costs for the flight are $3,000 per flight using the small aircraft. These are the costs that depend on which aircraft is used. The medium and large plane have larger incremental costs, most notably including the cost of fuel to fly the route. NOTE: The airline has many other costs (not shown above) that do not depend on which aircraft is used. Under the assumption we are going to choose one of these three options, we will ignore these costs. The number of seats demanded at the planned ticket price varies according to the probability distribution shown below. The ticket price is $400 per seat and does not depend on which aircraft is used. D= # of seats demanded at projected ticket price An airline has three different types of aircraft in their fleet. The seating capacity and operating costs for the three different aircraft are as shown below: The small aircraft for example has 150 seats, therefore we can sell no more than 150 tickets per flight if we schedule the small aircraft. The incremental operating costs for the flight are $3,000 per flight using the small aircraft. These are the costs that depend on which aircraft is used. The medium and large plane have larger incremental costs, most notably including the cost of fuel to fly the route. NOTE: The airline has many other costs (not shown above) that do not depend on which aircraft is used. Under the assumption we are going to choose one of these three options, we will ignore these costs. The number of seats demanded at the planned ticket price varies according to the probability distribution shown below. The ticket price is $400 per seat and does not depend on which aircraft is used. D= # of seats demanded at projected ticket price
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