The airline American Airlines operates daily flights only within the U.S. However, the administration has decided...

 

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The airline American Airlines operates daily flights only within the U.S. However, the administration has decided to start the transcontinental routes shown in Table 1 beginning in January of next year. Route 1 2 3 4 5 6 Table 1. Proposed transcontinental flight routes (round) Estimated demand Route New York - London New York - Paris Cincinnati - London Cincinnati - Paris Atlanta-Luxemburg Atlanta -Rome 6500 4300 3200 3500 2800 4900 Entry $980 $823 $965 $1025 $843 $975 Estimated demand = Maximum number of passengers per week. Revenue = Average revenue per passenger (round flight) The aircraft available in the company to carry out these flights are listed below. Derived from the conditions of flight times, maneuvering times and crew needs, each aircraft can only have 3 transcontinental (round) flights per week. For planning purposes, the expected revenue is considered to be only 93% (not rounded) of the aircraft's capacity. 4 1 2 3 Route 1 2 3 56 4 6 Table 2 Aircraft information Type Airbus A380 Boeing 747 Boeing 777 MD-11 Information about the cost per round trip is shown in the following table. The information includes costs for fuel, crew, ground equipment, and operation and maintenance costs. Annually the airline can invest $ 1,250 million in these new flights. Route New York - London New York - Paris Cincinnati - London Cincinnati - Paris Atlanta-Luxemburg Atlanta -Rome Availability 4 7 10 3 $721,000 $637,000 $724,000 $798,000 $636,000 $715,000 Table 3 Cost per round flight Airbus 380 Boeing 747 $408,000 $353,000 $398,000 $435,000 Capability (passengers $351,000 $401,000 Boeing 777 $323,000 $273,000 $324,000 $339,000 840 467 365 320 $277,000 $319,500 MD-11 $283,000 $241,000 $287,000 $302,000 $247,000 $288,000 For airports there is a restriction on the maximum number of flights that can depart per week from an airport. The receiving airports have no restriction. Airport New York Cincinnati Atlanta Max Flights/week 20 15 25 • Formulate a model that helps the company to determine the number of transcontinental flights for each route and for each aircraft that maximizes the profits of the airline company (Consider all costs in dollars*). The airline American Airlines operates daily flights only within the U.S. However, the administration has decided to start the transcontinental routes shown in Table 1 beginning in January of next year. Route 1 2 3 4 5 6 Table 1. Proposed transcontinental flight routes (round) Estimated demand Route New York - London New York - Paris Cincinnati - London Cincinnati - Paris Atlanta-Luxemburg Atlanta -Rome 6500 4300 3200 3500 2800 4900 Entry $980 $823 $965 $1025 $843 $975 Estimated demand = Maximum number of passengers per week. Revenue = Average revenue per passenger (round flight) The aircraft available in the company to carry out these flights are listed below. Derived from the conditions of flight times, maneuvering times and crew needs, each aircraft can only have 3 transcontinental (round) flights per week. For planning purposes, the expected revenue is considered to be only 93% (not rounded) of the aircraft's capacity. 4 1 2 3 Route 1 2 3 56 4 6 Table 2 Aircraft information Type Airbus A380 Boeing 747 Boeing 777 MD-11 Information about the cost per round trip is shown in the following table. The information includes costs for fuel, crew, ground equipment, and operation and maintenance costs. Annually the airline can invest $ 1,250 million in these new flights. Route New York - London New York - Paris Cincinnati - London Cincinnati - Paris Atlanta-Luxemburg Atlanta -Rome Availability 4 7 10 3 $721,000 $637,000 $724,000 $798,000 $636,000 $715,000 Table 3 Cost per round flight Airbus 380 Boeing 747 $408,000 $353,000 $398,000 $435,000 Capability (passengers $351,000 $401,000 Boeing 777 $323,000 $273,000 $324,000 $339,000 840 467 365 320 $277,000 $319,500 MD-11 $283,000 $241,000 $287,000 $302,000 $247,000 $288,000 For airports there is a restriction on the maximum number of flights that can depart per week from an airport. The receiving airports have no restriction. Airport New York Cincinnati Atlanta Max Flights/week 20 15 25 • Formulate a model that helps the company to determine the number of transcontinental flights for each route and for each aircraft that maximizes the profits of the airline company (Consider all costs in dollars*).

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To formulate a mathematical model that maximizes the airline companys profits we can set up a linear ... View the full answer