MyJet Airlines provides daily services between London and Rome with a 300 seater A320 aircraft. Assume that

Question:

MyJet Airlines provides daily services between London and Rome with a 300 seater A320 aircraft. Assume that the airline charges an average of $450 per seat and the number of passengers who reserve a seat but do not show up for departure is normally distributed with mean 40 and standard deviation 15.

Calculate the maximum number of booking in this market if the cost of overbooking is $800.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Air Transport Economics

ISBN: 9781032482538

4th Edition

Authors: Bijan Vasigh, Brian Pearce

Question Posted: