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The authorities of the Indira Gandhi International Airport (Terminal 3) have decided to i55ue 2,500 new taxi permits for Rs.1000 each. These permits authorize a
The authorities of the Indira Gandhi International Airport (Terminal 3) have decided to i55ue 2,500 new taxi permits for Rs.1000 each. These permits authorize a taxi to service arriving passengers. Your client has a taxi fleet in the city but does not service the airport. He has excess capacity (meaning he has cars and drivers available). He has asked you to determine if he should buy those new permits. If so, how many should he buy? Additional Information: 0 Airport handles 42 million passengers yearly 0 There are 5500 taxis operating in the airport 0 On average a taxi takes 50 minutes to drive paSSenger and return to airport for next pick up 0 On average a passenger pays R5200 cab fare via regulated rates 0 On average 40% of domestic flights passengers and 80% of international flights passengers use taxis o 30% of daily demand occurs between 6:00 am and 10:00 am, 40% occurs between 6:00 pm and 10:00 pm 0 Assume each passenger uses one cab o On average each taxi requires Rs. 8000 yearly on maintenance 0 Taxi drivers keep 50% ofthe fare
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