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You are working in the Fleet Planning Section of SARMI Airlines. You are planning to analyze your route between Paris ( CDG ) stanbul (

You are working in the Fleet Planning Section of SARMI Airlines. You are planning to analyze your route between Paris (CDG)stanbul (IST) in yearly basis. The following information was received.
The airline is planning to operate Boeing B737-800
Aircraft with 162 seats, mixed configuration 10 seats for business and 152 seats for economic classes
Total annual flights (each direction) are 730.
Block hours from IST to CDG is 3,8 hours.
Block hours from CDG to IST is 3,2 hours.
Non-stop miles IST/DGA is 1400 miles.
The local O-D demand is for 190.000 one-way passenger trips (summed over both directions) per year.
%80 of this O-D market demand, at an expected average fare of 550 $ per one passenger trip
High estimate of market share based on non-stop service between O and D (%20 will continue to choose other flights)
Additional traffic
Connections North American Cities behind DGA to/from IST (8000/400 $)
Connections Asia to/from DGA beyond IST (10000/450 $)
Additional cargo revenue is 10% of passenger revenue.
The cost data was provided below:
Crew cost is 3500 $
Fuel oil cost is 5000 $
Ownership cost is 1500 $
Maintenance cost is 1500 $
Indirect cost
Passenger service 0.03 per RPM
Traffic servicing is 50 $ per enplanement.
The Aircraft service fee is 2500 $ per departure.
Promotion and sales %10 of passenger revenues.
General and administrative 0.02 per ASM
Find
Total Revenue
Total Direct Cost
Total Indirect Coast
Profit
Operating Margin

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