Question: Factor Rating Case Study American Airlines (AA) is considering expanding its network by adding an airport to its main hubs. After analyzing their network by

Factor Rating Case Study American Airlines (AA)
Factor Rating Case Study American Airlines (AA) is considering expanding its network by adding an airport to its main hubs. After analyzing their network by applying network cost analysis, they found three potential major airports, including Atlanta (ATL), Denver (DEN), and Boston (BOS), that would be appropriate to add to the roster of hub airports. After running a survey among some airline market experts, they come up with the results reported in the following table. There are ten major characteristics that the managers consider to choose the best location for the airport. Assuming AA has certain preferences on the proposed criteria, use the factor rating method to find an airport that makes more sense to be added to their network? Weight Atlanta (ATL) Denver (DEN) Boston (BOS) 0.1 10 7 9 0.05 7 8 9 0.025 5 6 7 0.15 7 6 8 Criteria Number of Passengers Distance to other Hubs Multimarket Competition Operating Cost Leisure City Destination Number of possible routes Number of possible gates Aircraft Capacity US Market share Number of rivals Factor Rating 0.05 5 7 8 0.2 9 00 7 0.2 7 6 5 0.1 6 7 7 0.1 9 8 7 7 0.025 4 6

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