Task 3: (LO 1 & 2) (35 marks) Khaleej Airways has wide network of flights all over GCC. Most of the flights operate to or from the companys headquarter, an airport based in Gulfia.

The Khaleej Airways executive management receives monthly reports on the profitability of each flight route, and any loss-making routes that are considered to be closed. The report below shows the average loss on each one-way flight between Oceana and Peninsula (in either direction):

BHD BHD

Sales of Ticket (occupancy is 60% & aircraft is 150 seater) Price of Ticket =BHD100 9,000

Operating Cost:

Security (Airport) Charge (450)

Advertising Expense (600)

Fuel (Aviation) (3,600)

Depreciation (2,200)

Salaries (Airline Crew) (1,100)

Staff on ground Expense 800

Insurance (2,400)

Allowance for Airline crew (overnight stay) (500)

Total operating costs 11,650

Loss 2,650

Q1) Suggest or recommend other information if given, would assist you in providing more accurate calculation of the financial implications of this flight being discontinued and elaborate how can Khaleej airways benefit from using the information identified, using your own wider research.