A survey has been commissioned by the Wi-Fi Alliance Association, a trade group representing companies in the

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A survey has been commissioned by the Wi-Fi Alliance Association, a trade group representing companies in the industry, indicating the needs of frequent business travelers to use inflight wi-fi. As a result of positive feedback, many airlines have signed a contract to install satellite-based systems in their fleets. Calculate the NPV and profitability index for this project if the installation costs $100,000 per aircraft. The airline management expects the move to pay off through user fees of $10 per connection, or $10,000 per aircraft annually for 30 years. The discount rate is 8 percent.

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Foundations Of Airline Finance

ISBN: 9780415743259

2nd Edition

Authors: Bijan Vasigh, Kenneth Fleming, And Barry Humphreys

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