Flight Operations Situation: Alternate Route Analysis Report

This report analyzes the financial feasibility of an alternate flight route, specifically a stopover between Japan and Hawaii, for an airline company. The analysis compares the profitability of the existing route with the proposed route, considering revenue, various costs (crew, fuel, meals, maintenance, and additional costs), and net profit. The financial analysis concludes that the alternative route is not feasible due to a decrease in overall profitability. Furthermore, the report identifies critical factors to be considered when deciding on an alternate flight route, including environmental factors (atmospheric conditions), legal factors (regulatory requirements and licensing), traffic on the intended route, seasonal factors (tourism patterns), and competitive forces (other flight operators). References to relevant academic literature are included to support the analysis.

Running Head: Consideration of Alternate Flight Route
Flight Operations

Consideration of Alternate Flight Route 1
Situation 2
Part 1
Profitability of
existing route
Profitability of
new route
Revenue
Passenger
Revenue (A) $ 2,40,000.00 $ 2,51,000.00
Cargo Revenue $ 80,000.00 $ 80,000.00
Total Revenue $ 3,20,000.00 $ 3,31,000.00
Costs
Crew 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

Consideration of Alternate Flight Route 2
case of taking stopover at Fiji.
Part 2
Factors 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).
Legal factors:
The airline company must consider the regulatory requirements to be complied with while
taking the new flight route. It will include considering the licensing requirements for the crew
members and flights to enter into the port. The company and all its crew members must have
the required license and permits to legally enter into the country.
Traffic on the intended route:
The airline company will have to take into consideration the traffic situation of the intended
route. If there remains heavy traffic on the proposed route then the company will have to
estimate the tolerable extensions in time it can face in the event of delay due to air traffic
(MacKay, W.E., 1999).
The seasonable factors:
The company must also consider the seasonality of Fiji’s tourism. While making a stopover
at Fiji, the company will have to determine whether there is large number of tourists or other
passengers who visits the country regularly or there is a lean or peak season of tourism
industry in that particular country (Kozak & Rimmington, 2000).
Competitive forces:

Consideration of Alternate Flight Route 3
The company will also have to consider the competing flight operators on the intended route.
The fare charged by the competitors for such route and the facilities they are providing to the
passengers on board.