Essay About Business Class And Overnight Stays

Data Model
2 day aircraft costOn-ground passenger costs due to overnight stays:  Business Class: 28 X 0.8 X 0.3 X (30 + 150 + 100) X 2 = $3,763.20 (This is expected passengers overnight times costs, for the two flights in the 2-day cycle. Coach Class: 185 X 0.7 X 0.5 X (10 + 75 + 45) X 2 = $16,835.00  Total On-Ground Stay Costs: $20,598.20 ( = $3,763.20 + $16,835.00 )  Tickets costs due to overnight stays:  Business Class: 28 X 0.8 X 0.3 X (6,930 X 0.7) X 2 = $65,197.44 (This is expected passengers overnight times costs of free ticket coupons, for the two flights in the 2-day cycle.)Coach Class: 185 X 0.70 X 0.50 X (2,750 X 0.50) X 2 = $178,062.50  Total On-Ground Tickets Cost: $243,259.94 ( = $65,197.44 + $178,062.50 )  Total costs paid to other airlines for re-booked passengers flying same night:  Business Class: 28 X 0.80 X 0.70 = 15.68 is number of passengers re-booking. 28 X 0.20 = 5.60 is the number of seats available on the other LAC flight (CSM 20). 15.68 – 5.60 = 10.08 is the number of passengers to re-book on competitor (AA). Cost is 10.08 X (6,500 / 2) X 0.95 X 2 + 5.60 X 0 X 2 = $62,244.00 (Note that all the ticket prices are round-trip fairs.)  Coach Class : 185 X 0.70 X 0.50 = 64.75 is the number of passengers re-booking. 185 X 0.30 = 55.5 is the number of seats available on the other LAC flight (CMS 20). 64.75 – 55.5 = 9.25 is the number of passengers to re-book on competitor (AA). Cost is 9.25 X (2,600 / 2) X 0.95 X 2 + 55.5 X 0 X 2= $22,847.50.  Total Re-Booking Costs: $85,091.50 ( = $62,244.00 + $22,847.50 )   Fuel Saving  The actual flying time is 8.5 hours. Fuel savings = 1,669 X 3.00 X 8.5 X 2 = $85,119.00