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Consideration of Alternate Flight Route

   

Added on  2020-05-16

4 Pages564 Words47 Views
Running Head: Consideration of Alternate Flight RouteFlight Operations
Consideration of Alternate Flight Route_1
Consideration of Alternate Flight Route1Situation 2Part 1Profitability of existing routeProfitability of new routeRevenuePassenger Revenue (A) $ 2,40,000.00 $ 2,51,000.00 Cargo Revenue $ 80,000.00 $ 80,000.00Total Revenue $ 3,20,000.00 $ 3,31,000.00 CostsCrew Cost $ -2,000.00 $ -3,400.00 Fuel Cost $ -21,000.00 $ -26,000.00 Meals and services $ -4,000.00 $ -4,900.00 Aircraft Maintenance $ -1,000.00 $ -1,000.00 Additional cost $ -5,000.00 $ -40,300.00 Total cost (B) $ -28,000.00 Net profit $ 2,92,000.00 $ 2,90,700.00 Decision:No, on the financial grounds it would not be feasible for the Airlines Company to use alternative flight route with the stopover between Japan and Hawaii.Because the overall profitability of the company will reduce by $ 1400 per flight in case of taking stopover at Fiji.Part 2Factors to be considered while deciding about the alternative flight route:Environmental factors:The atmospheric conditions on the route intended to be opted is the most critical factor to be considered as it can cause severe air disasters and also it can lead to heavy disruptions in the flight schedules (Upham, Thomas, Gillingwater & Raper, 2003).
Consideration of Alternate Flight Route_2

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