Question
I have made a business plan to form an airline that will initially operate a single aircraft. Now, The aircraft is Boeing 747 so the
I have made a business plan to form an airline that will initially operate a single aircraft. Now,
The aircraft is Boeing 747 so the data are
the cost of aircraft-$387.2 million
the cost for fuel per year $8228924
maintenance per year-$240 million
cost for navigation per year $416150
a) write the finance part which should include the capital invested, and the fixed and variable costs and the potential revenues. This cost portion includes the cost to acquire the aircraft, and the cost of operations (fuel, manning, maintenance, navigation costs and all related costs).
b) Draw a yearly cash flow diagram for a period equal to the life of your chosen aircraft. (Hint: you can do detail analysis monthly, then multiply by 12 to get the yearly expenses and revenues).
c) Finally, make the judgement if your airline is profitable, or otherwise. If it is profitable, what are the ROI and the payback period for the capital invested? Assume that the prevalent interest rate is 10% per annum.
if u need any revenue value u can just estimate by your own.
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