COST FOR AN AEROPLANE YEARLY IS GIVEN BELLOW.

a. Cost of aircraft - 387,200,000

b. Cost of fuel - 8,228,924

c. Maintenance - 240,000,000

d. Cost for navigation - 416150

Total cost = a+b+c+d = 635,845,083 = 635.85 million of which 387.2 million is a one time cost and 248.65 million is repetitive every year.

This means you need to earn at least 300 million every year to keep your business running, considering you'll also be paying salaries to staff members.

So every month, you need to earn 300/12 = 25 million.

Boeing 747 has a seating capacity of approximately 400 passengers, and let say you operate at 100% capacity, that is, 400 passengers at a time.

Let say you fly from New York to London and return from London to New York on a day to day basis. That reflects 800 passengers daily. It takes roughly 7hrs for one side journey, and the Aircraft requires cooling time also. SO the maximum you can make is a one return trip daily.

On an average basis, the cost of 1 ticket from New York to London is 1000$. This means a revenue of 1000*800 = 800,000 daily.

Suppose you operate on 30 days of the month. You generate 24,000,000 or 24 million per month.

24 million * 12 months = 288 million in a year you will be able to generate. Of these 288 million, 250 million is your annual fuel charges, maintenance, navigation, etc. Additional charges are parking rent, salary to staff, airport charges.

Don't forget you also have 387.2 million costs towards Aircraft.

I think it is not a profitable business, and you should drop the idea. Also, if you see the financials of all the airline companies running today or used in the past, most of them (90%) were loss-making companies. I have shown you this by looking at the best-case scenarios; that is, you are operating 100% daily, whereas we all know that's not possible under any circumstances.

1.Please draw Cash flow diagrams for these answers.

2.And show the necessary steps.