Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Leisure Air is a regional airline that provides sendee from Pittsburgh, Newark, Charlotte, Myrtle Beach and Orlando. Leisure Air has two Boeing 737-400 airplanes, one
Leisure Air is a regional airline that provides sendee from Pittsburgh, Newark, Charlotte, Myrtle Beach and Orlando. Leisure Air has two Boeing 737-400 airplanes, one based in Pittsburgh and the other in Newark. Both airplanes have a coach section with a 132-seat capacity. Each morning the Pittsburgh-based plane flies to Orlando with a stopover in Charlotte., and the Newark-based plane flies to Myrtle Beach, also with a stopover in Charlotte. At the end of the day, both planes return to their home bases. Leisure Air uses two fare classes: a discount-fare Q class and a full-fare Y class. Reservations using the discount-fare Q class must be made 14 days in advance and must include a Saturday night stay in the destination city. Reservations using the full-fare Y class may be made anytime, with no penalty for changing the reservation at a later date. The itinerary' and fare alternatives that Leisure Air can offer to its customers based on both the origin-destination of each flight and the fare classes are synthetize in the following table. Determine how many discount-fare and full-fare seats Leisure Air should make available in their reservation system to maximize its daily total expected revenue from running the two planes
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started