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

The EU has made changes in airline regulation that dramatically affect major European carriers such as British International Air (BIA), KLM, Air France, Alitalia, and Swiss International Air. With ambitious expansion plans, 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 BIAs 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 shown in the next page.

Help Miller rank the top three cities that BIA should consider as its new site for servicing aircraft.

Factor

Importance Weight

Italy

France

Germany

Milan

Rome

Florence

Paris

Lyon

Nice

Munich

Bonn

Berlin

Financial incentives

85

8

3

1

8

8

5

1

3

9

Skilled labor pool

80

4

7

6

7

4

2

9

10

3

Existing facility

70

5

9

4

4

7

5

5

4

6

Wage rates

70

9

6

4

4

9

10

8

2

8

Competition for jobs

70

7

8

1

3

7

1

4

8

9

Ease of air traffic access

65

5

4

6

4

10

5

4

5

7

Real estate cost

40

6

5

6

9

9

5

8

4

10

Communication links

25

6

10

4

7

1

6

2

6

9

Attractiveness to relocating executives

15

7

6

2

6

9

1

7

8

3

Political considerations

10

8

9

10

9

2

5

6

1

1

Expansion possibilities

10

9

1

9

10

4

7

1

4

10

Union strength

10

10

10

10

8

8

8

2

3

1

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