Essay About Night Airlines And Night Plans

Fly-By-Night Airline
Fly-by-Night Airlines is a major commercial air carrier offering passenger service between
most large cities in the United States. One of its more profitable routes is between Los Angeles and
New York. Competition on this route is intense, and James Baron, supervisor of transcontinental
operations for Fly-by-Night, is considering upgrading the quality of the fleet of aircraft used on the
Los Angeles – New York run.
As it has in the past, Fly-by-Night plans to purchase all its planes from P&J Aircraft
Company. P&J markets three aircraft: (1) the old reliable PJ-1, for the last ten years the workhorse
of the airline industry; (2) the soon-to-be-introduced PJ-2, currently in the test flight stage; and (3)
the technologically advanced PJ-3, still in the design stage. Although PJ-2 and PJ-3 will not be
available for service until sometime in the future, P&J is now taking contingency orders for these
planes. If Fly-by-Night is to have any hope for prompt delivery, it must order the planes today, even
though it will not take delivery or pay for them until sometime in the future. Fly-by-Night is very
interested in the newer models because they are more fuel efficient and less polluting, require less
maintenance, and are much quieter than the old PJ-1.
Fly-by-Night currently uses five PJ-1 planes to service its Los Angeles – New York route.
These planes were purchased 10 years ago for a cost of $15 million per plane; each is being
depreciated