Question
Small State Air serves several airports in the Rocky Mountain States, flying customers to the larger airports for connecting flights. Recent data for a particular
Small State Air serves several airports in the Rocky Mountain States, flying customers to the larger airports for connecting flights. Recent data for a particular route reveals that the one daily flight has had 10 business customers and 20 coach class customers. The plane seats 42. The charge for business class is $250, and the charge for coach is $165. The airline is considering a temporary price cut to boost bookings on the flight, but is uncertain about which class to discount, and by how much. You have been called in as a consultant to the airline. What would you advise and why?
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