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In comparing airline companies it is common to analyze Revenue/passenger/mile traveled. The company with the higher R/P/M is generally considered to be better run.

 

In comparing airline companies it is common to analyze Revenue/passenger/mile traveled. The company with the higher R/P/M is generally considered to be better run. In the statistics below, both companies earn the same Revenue and R/P/M so a direct comparison is more difficult. Delta United Revenue (R) $10,000,000,000 $10,000,000,000 Passengers (P) 4,000,000 2,666,670 Miles flown (M) Jet fuel price Customer acquisition cost (i.e. Facebook advertising, Google ad words, etc.) GDP/capita 20,000,000 30,000,000 R/P/M Assume that there are 2 potential new markets for air travel: Uruguay or Paraguay. Which market would likely be more lucrative for Delta and which for United? Uruguay $5.00 per gallon $0.50 per contact $35,000 $1.25 $1.25 Paraguay $8.00 per gallon $0.20 per contact $50,000

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