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An international air carrier plans to purchase a jumbo - class aircraft to serve the ChicagoLondon city pair. Restrictions in landing slots at Heathrow Airport

An international air carrier plans to purchase a jumbo-class aircraft to serve the ChicagoLondon city pair. Restrictions in landing slots at Heathrow Airport allowed the purchase of
five landing/take-off slots, one per weekday. The carrier does not intend to offer weekend
service. The following table presents passenger demand estimates and fares charged by
competitors:
Five-weekday One-way
Trip demand fare($)
Chicago-London-Chicago 975400
Chicago-London 230680
London-Chicago-London 880475
London-Chicago 400775
The round-trip Chicago-London-Chicago is 13,000 km, and the aircraft choices and cOsts are:
Seating Oper. Cost Fixed
Aircraft capacity seat-km cost/year
B-7473852.57 $4.5 million
DC-102352.97 $3.7 million
Should the airline enact service and which aircraft shpuld be chosen? Solve based on profit
maximization.

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