Southeastern Airlines daily flight from Atlanta to Charlotte uses a Boeing 737, with all-coach seating for 120
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Southeastern Airlines’ daily flight from Atlanta to Charlotte uses a Boeing 737, with all-coach seating for 120 people. In the past, the airline has priced every seat at $140 for the oneway flight. An average of 80 passengers are on each flight. The variable cost of a filled seat is $25. Aysajan Eziz, the new operations manager, has decided to try a yield revenue approach, with seats priced at $80 for early bookings and at $190 for bookings within 1 week of the flight. He estimates that the airline will sell 65 seats at the lower price and 35 at the higher price. Variable cost will not change. Which approach is preferable to Mr. Eziz?
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Operations Management Sustainability And Supply Chain Management
ISBN: 9780137476442
14th Edition
Authors: Jay Heizer, Barry Render, Chuck Munson
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