Question: The EU has made changes in airline regulation that dramatically affect major European carriers such as British International Air, KLM, Air France, Alitalia, and Swiss.

The EU has made changes in airline regulation that dramatically affect major European carriers such as British International Air, KLM, Air France, Alitalia, and Swiss. With ambitious expansion plans, British International Air (BIA) has decided it needs a second service hub on the continent, to complement its large Heathrow (London) repair facility. The location selection is critical, and with the potential for 4,000 new skilled blue-collar jobs on the line, virtually every city in Western Europe is actively bidding for BIA's business. After initial investigations by Holmes Miller, head of the Operations Department, BIA has narrowed the list to 9 cities. Each is then rated on 12 factors, as shown in the table below.

City

Italy

France

Germany

Factor

Factor Description

Weight

Milan

Rome

Genoa

Paris

Lyon

Nice

Munich

Bonn

Berlin

1

Financial incentives

80

9

8

9

6

8

8

7

7

8

2

Skilled labor pool

75

4

6

4

8

9

6

10

8

9

3

Existing facility

65

4

4

2

8

7

4

9

8

1

4

Wage rates

75

8

8

8

5

5

5

3

6

6

5

Competition for jobs

75

8

2

8

3

7

7

3

7

9

6

Ease of air traffic access

70

5

3

6

3

7

9

3

9

10

7

Real estate cost

45

7

5

6

5

7

5

2

4

5

8

Communication link

25

6

7

7

8

8

9

10

8

8

9

Alternativeness to relocating executives

20

5

7

4

9

7

5

2

4

2

10

Political considerations

10

6

6

6

9

8

9

7

2

9

11

Expansion possibilities

5

9

1

9

2

5

5

5

5

7

12

Union strength

10

2

3

2

5

6

4

6

7

6

Part 2

a) Based on the given information, the best location for the aircraft servicing facility is

Lyon

Bonn

Paris

Berlin

Genoa

Nice

Milan

Rome

Munich

, with a total weighted score of __________ (Enter your response as an integer.)

b) After further investigation, Miller decides that an existing set of hangar facilities for repairs (factor 3) is not nearly as important as earlier thought. If he lowers the weight of that factor to 25, after this change, the best location for the aircraft servicing facility is

Nice

Genoa

Paris

Bonn

Rome

Munich

Lyon

Berlin

Milan, with a total weighted score of ______ (Enter your response as an integer.)

After making the change to the previous weight to 25, Miller has also been informed that Germany wants to reconsider its offer of financial incentives and wants to add 200-million-euros to the package to entice BIA. Based on this information, the rating assigned to Germany on this factor should be raised to 10.

After making both the necessary changes, the best location for the aircraft servicing facility is _______

Rome

Milan

Lyon

Berlin

Paris

Munich

Nice

Bonn

Genoa, with a total weighted score of _____ (Enter your response as an integer.)

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