RyanAir is a discount airline that flies Boeing 737s popular routes throughout Europe. In order to maintain profitability they attempt to fly their planes at capacity but they do allow customers to change their flights without a change fee. On average 16 customers (with a standard deviation of 9) cancel or are no shows for a typical flight. The average revenue collected from a flight is $95/seat. However, if the flight is overbooked and the airline needs to rebook a ticketed passenger, RyanAir typically gives the customer a free round-trip ticket to use for a future flight. The cost of this free round-trip ticket averages $162.

 

By how many seats should RyanAir overbook? 

Answer rating: 100% (QA)

Overbooking Improvement Seats versus Income Client RyanAir is a markdown carrier that flies Boeing 737s well known courses all through Europe To keep ... View the full answer