...fleet of three 30-passenger corporate jets that provide (weather permitting) daily scheduled service between Detroit and several cities that are home to its production facilities. The jets are used for business, not personal, travel. Corporate executives book reservations through a centralized transportation office. Because of the limited number of seats available, the planes almost always fly full, at least in the nonwinter months. Excess demand for seats is assigned by executive rank within the firm. The executive’s budget is charged for the flight at the end of the month. The charge is based on the jet’s total operating expenses during the month (including fuel, pilot’s salary and fringes, maintenance, licensing fees, landing fees, and 1/12 of the annual accounting depreciation) divided by the actual passenger miles logged in the month. This rate per passenger mile is multiplied by each passenger’s mileage flown in the month. Required: a. Describe the formula being used to calculate the cost per passenger mile flown. - The allocation of corporate costs is in form of transfer pricing within the firm. Since most cost allocation problems involve transfer pricing problems, in this problem, the formula being used consists of monthly expenditures for both fixed and variable costs divided by actual miles flown. b. As passenger miles flown increases, what happens to the cost per passenger mile? - The average price charged falls with the rising numbers of passenger miles. Therefore...
Words: 411 - Pages: 2
...STRATEGY Ryanair’s objective is to firmly establish itself as Europe’s leading low-fares scheduled passenger airline through continued improvements and expanded offerings of its low-fares service. Ryanair aims to offer low fares that generate increased passenger traffic while maintaining a continuous focus on cost-containment and operating efficiencies. The key elements of Ryanair’s strategy are: Low Fares. Ryanair’s low fares are designed to stimulate demand, particularly from fare-conscious leisure and business travelers who might otherwise have used alternative forms of transportation or would not have traveled at all. Ryanair sells seats on a one-way basis, thus eliminating minimum stay requirements from all travel on Ryanair scheduled services, regardless of fare. Ryanair sets fares on the basis of the demand for particular flights and by reference to the period remaining to the date of departure of the flight, with higher fares charged on flights with higher levels of demand for bookings made nearer to the date of departure. Ryanair’s Dublin to London (Stansted) route is its largest route in terms of passenger volume, with fares ranging from 0.99 to 199.99 (excluding government taxes and passenger service charges). Ryanair’s competitors generally do not operate a one-way pricing policy, so direct comparison is not possible, but current round-trip fares on Aer Lingus, Ryanair’s largest competitor on the LondonDublin route, for travel in September 2004 were 82.27 for economy...
Words: 2055 - Pages: 9
...purchase anything on the plane to try and save some cash. Instead you plan on purchasing the items at the airport when you land, but then you realize everything is more expensive within the security checkpoints. Well airports are all developed and designed in a specific way to allow competition within their airports to allow a bigger profit and further fund future development. When it comes to funding airports there are a couple sources the money comes from. The first to be known is the airport and special facility bonds issued by the government. These bonds were issued to certain facilities like airports to help fund current and future accusations and builds. The funds that would be issued under these bonds would be based on their proceeds. These bonds could be issued on a basis up to 95 percent of the total proceeds. The way airports were able to qualify for such bonds is that they had to satisfy the public use and be available on a regular public basis (Exempt Facility Bonds). The second...
Words: 1267 - Pages: 6
...moment they enter the airport. Airport Customer Service help passengers and their bags get from the front door to the terminal gate to onboard the aircraft, ready for an on–time takeoff. Nowadays you can book flight from your home just follow these steps : Go to the website of the airline you choose , write your flight destination .Then choose the time you want to travel at. After that , choose your ticket type. Then full your information and choose the payment method . now you get your ticket all you have to do now is to print your ticket. daa is committed to providing the best possible services and facilities for visitors to the airport - to both passengers and those accompanying or meeting them. This commitment is offered in partnership with a number of other service providers including the airlines, handling agents, concessionaires and other government agencies. As part of our effort to provide a safe, clean and welcoming airport environment, daa continuously monitors customer feedback and satisfaction through both extensive market research and direct customer feedback. Customer Care staff are also available at locations throughout the airport concourse to assist visitors with any requirements they may have. Our customer Information Desk is located on the Arrivals level, where staff will be happy to assist you with any queries. As part of our ongoing commitment to significantly improve the passenger experience at Dublin Airport, daa embarked on a €1.2 billion development...
Words: 620 - Pages: 3
...CHAPTER 1: INTRODUCTION 1.1 Research Background The competition between Low Cost Carriers (LCCs) and Full Service Carrier is getting intense caused by the process of liberalization in aviation field. In the case of Malaysia, the entries of LCCs, Air Asia, Firefly and Malindo have raised the number of passengers travelling inbound or outboard of the destination. According to Malaysia Airports Holding Berhad (MAHB) Annual Report 2009, the passenger movement of AirAsia for domestic traffic at KLIA increases to 5,588,493 passengers which is an increment of 10.6 percent compare to 2008. For the aviation sector, there is a significant growth of 16.6 percent, from 24.2 million passengers in 2009 to 28.2 million passengers in 2010. No doubts, airlines and airport are tightly related. This can be shown from the statement of Neufville & Odoni (2003), airport systems exist and must be designed in the context of their major clients, the airlines. To build airport facilities that will perform effectively, it is necessary both to appreciate the historical context and to understand the current and prospective needs of the users. Airports and air transport at the start of the twenty-first century constitute an exciting long-term growth industry. The industry is large, innovative, and has excellent prospects. The growth in air transport translates into major airport projects. And about a dozen major programs for airport development, costing over a billion dollars each, have...
Words: 9073 - Pages: 37
...UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2010 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-5424 DELTA AIR LINES, INC. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporation or organization) Post Office Box 20706 Atlanta, Georgia (Address of principal executive offices) Securities registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange on which registered 58-0218548 (I.R.S. Employer Identification No.) 30320-6001 (Zip Code) Registrant’s telephone number, including area code: (404) 715-2600 Common Stock, par value $0.0001 per share New York Stock Exchange No Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No Indicate by check mark whether the...
Words: 54102 - Pages: 217
... 5 4.0 Marketing & Selling Strategy 6-10 1. Demographics Factors 6 2. Customer Profile 6 3. Need for Services 7 4. Economic Factors 8 5. Competition 8-9 6. Pricing 9 7. Advertising 9 8. Customer Services 9-10 5.0 Operating Plan 11 1. Start-up Cost Summary 11 2. Legal Requirements 11 6.0 Financing 12-19 6.1 Break-even Analysis 12 6.2 Financial Analysis 13-19 7.0 Ratios Analysis 20 8.0 Conclusion 20 1.0 Introduction A taxi cab is a type of vehicle for hire with a driver, used by a single passenger or small group of passengers. A taxi cab conveys passengers between locations of their choice. In modes of Public transport, the pick-up and drop-off locations are determined by the service provider, not by the passenger. Although demand responsive transport and share taxis provide a hybrid taxi mode. Although types of vehicles and methods of regulation, hiring, dispatching, and negotiating payment differ significantly from country to country, many common characteristics exist. Many people have relied on a taxi cab to pick them up and take them to their destination. First taxi service is started in America. In 1890, city streets became crowded with horse drawn carriages and the Nation’s first automobile. This resulted in the taxi car service. However, the logistics were impractical. So, Electric-powered cars come to the field. Despite the impracticality...
Words: 3386 - Pages: 14
...support of more than 100 international airlines. Every 90 seconds, a flight departs from or lands at Changi Airport. Passenger traffic at the airport exceeds 53 million people annually, roughly 10 times the population of Singapore. Changi Airport is not an ordinary airport and is known for its unconventional amenities. It has a comfortable and clean environment and boasts superior customer service. There are 350 retail stores and 120 restaurants inside the airport’s three terminals, which accounts for a total business area of roughly 750,000 square feet and 50% of the airport’s revenue (S$2 billion in 2013). To name a few unique amenities, there are free movie theatres, napping and lounge chairs, karaoke studios, showers, prayer rooms, playgrounds, events for families and children, and gardens housed within the airport, among many other things. It is viewed “not just as Singapore’s gateway to the world, but also the world’s gateway to Singapore.” This all makes Changi airport a travel destination rather than merely a transportation hub. When the airport began operations in 1981, Terminal 1 was able to accommodate 12 million passengers on an annual basis. Constant advancements and improvements now permit Terminal 1 to support a maximum capacity of 21 million passengers a year. In 1990, Terminal 2 opened with a capacity to support 12 million passengers annually and was later expanded in...
Words: 2354 - Pages: 10
...Turn Around of Indian Railways Micro Economics Assignment Contents Railways 3 Indian Railways 3 Causes for decline in performance 3 Diagnostics, Recommendations and Initiatives taken by Indian Railways 4 Outcome 5 Domain Analysis 7 Passengers Domain 7 Freight Domain 7 Other Domains 10 Parcel and Catering Services 10 Monopoly of Indian Railways – A welfare maximization firm 13 Revenue Maximization 14 Freight 14 Passenger 14 Others 14 Price Discrimination 15 First Level Price Discrimination 15 Second Level Price Discrimination 15 Third Level Price Discrimination 15 Auctions Applied in IR 16 Sealed first-price auction in Parcel Service: 16 Reverse Auction in Catering Service: 16 Railways Railways is a rising industry not just in India but in many parts of the world. Railways went out of business in the West from the 1960s to 1990s due to its inability to respond to competition from road and air traffic systems. Since railways are large entities serving vast and expansive areas it is often believed that they are unable to adapt to changes in the environment. For decades the only news about rail systems was about their decline. This decline has been halted and reversed in many parts of the world. Railways are resurging based on new ideas (e.g. high speed trains), environmental friendliness, new customer oriented services and new attitudes all over the world. Indian Railways Indian Railways (IR) is the largest railway network in...
Words: 3246 - Pages: 13
...aviation demand. Airport master plans serve as facility development guides for a long-range planning horizon (usually 20 to 25 years), and summarize an airport’s strategy for the development of the airport. The goal of a master plan is to provide the framework needed to guide future airport development that will cost-effectively satisfy aviation demand, while considering potential environmental and socioeconomic impacts. Master Plans also provide the airport with the tools to react to uncertainties by examining key trends in the aviation industry, such as changing airline business models, improvements in technology, and local/regional economics that could affect airport activity. Master plans vary in the level of detail and complexity depending on the size, function, issues and challenges of the airports under study. FAA Advisory Circular 150/5070-6B Airport Master Plans provides guidance for the preparation of airport master plans. Read the FAA Advisory Circular (Adobe PDF) Specific objectives of the Master Plan Update put forth by Denver International Airport (DIA) include the following: Maintain and ensure the safety and security of the Airport Emphasize customer service and satisfaction Plan for phased, incremental development that meets foreseeable aviation demands and maintains flexibility for change Maintain practical and affordable airline costs per passenger Meet sustainability and environmental...
Words: 3264 - Pages: 14
...Civil Aviation Policy – Consultation with stake holders Civil Aviation sector in India has soared to great heights in the last few years. However, the aviation industry’s growth will need proper policy orientation to ensure systematic, sustainable and orderly development. Hence, it is imperative that a clearly defined, long term civil aviation policy is formulated. Such policy while addressing issues related to safety, security, infrastructure development, revenue models, private sector participation etc. must also provide for a safe and comfortable yet affordable air travel to passengers. The Ministry of Civil Aviation, Government of India, is in the process of formulating a Civil Aviation Policy. The civil aviation sector has many complex areas, which need to be addressed in formulation of the policy; some of them are indicated below. Organizations and individuals are requested to give their inputs, views and suggestions on aspects given below (or any other related issues), for facilitating the Ministry of Civil Aviation in drafting the proposed Civil Aviation Policy. These may be sent to the DT section, Ministry of Civil Aviation, Rajiv Gandhi Bhawan, New Delhi, India; or e-mailed to Dtsec.moca@nic.in Views of some stake-holders already received are placed below for reference and cross fertilization of ideas. While giving your views, please mention specifically if you have any objection in keeping your views in public domain. Your views may be sent before 20th February,...
Words: 39344 - Pages: 158
...of the city München Hauptbahnhof, which is located close to Marienplatz and Karlsplatz. The final stop of S1 is Ostbahnhof and Geltendorf is the final stop of S8. From Hauptbahnhof, passengers can transfer to lines 1, 2, 4, and 5 of the city metro U-Bahn. S-Bahn trains from MUC depart every 20 minutes, so passengers do not have to wait long. If the final destination is located in Munich city center, there is almost no difference what line S1 or S8 to take. In any case, they go via the central station. The...
Words: 2142 - Pages: 9
...members and with one 15 seater turboprop plane from the south of east of Ireland to London-Gatwick which carried 5000 passengers on one route (Harrison, 2002). In 1986, inspired from the story of David and Goliath the company go after the big guys for a slice of the action and end up smashing the Aer Lingus or British Airways high fare cartel on the Dublin-London route. The staff increased from mere 57 to 120 staff members and the plane carried for about 82,000 passengers on two routes. In 1989, the company employed 350 staff and their average maximum passengers increased to 600,000. In 1990-1991, the company has 700,000 passengers. However, despite of the increase of passengers, the company is not so good in managing cost that the company has lose its money. A new management team is brought in to sort it out and re-launch as a “low fares or no frills” airline, closely modelling the Southwest Airlines model in the U.S. And in 1994, Ryanair bought its first Boeing 737 aircraft which carried over 1.5 million passengers. In 1995, Ryanair is the biggest passenger carrier on Dublin-London route, the largest Irish airline on every route being operate and carried 2.25 million passengers in the year (Harrison, 2002). In 1997, the EU air transport deregulation allowed the airline for the first time to open up new routes to Continental Europe with over 3 million passengers on 18 routes carried. Ryanair launched services to Stockholm, Oslo, Paris and Brussels and took time out to float Ryanair...
Words: 1285 - Pages: 6
...aircrafts have paved road for an efficient long distance air travel. Due to the, rise in the low-cost carrier business model, there has been a drastic increase in domestic air travel as well. The reduction in the prices of air fare and the increase in safety and accessibility of air transport have changed the mind-set of recent travellers. Aircrafts are not only being used to carry people but also cargo. Transporting perishable cargo over long distances has become the major roles of cargo airliners generating them great revenue. This increased the air freight by a factor of fourteen. (IATA Vision 2050). The increase in the revenue generation led to a new business model in the aviation industry. The major asset for any airliner either passengers or cargo is their aircrafts. The airliners are responsible for the maintenance of its fleet. Hence, the overall activities of an airliner can be divided into in flight and ground functions. GROUND OPERATIONS AIRPORTS Any airline industry need minimum infrastructure to ensure a smooth flow of its business and to fulfil requirements set by the...
Words: 2696 - Pages: 11
...Indian Aviation Industry Name: .................. Guide: Prof. ......... Roll Number: ..... Session: .............. Dept.: B.Com PREFACE This training manual introduces Aviation Industry.The module is meant to give all its users a firm grounding on Aviation Industry. The manual starts with the key concepts of basic Information of Aviation Industry.A major portion of this material revolves around goals & objectives of Aviation Industry. The next part of this manual covers Air facts. Final part of this book deals with benefits of Aviation Industry. The material also offers in-depth coverage of the issues related to uniqueness of aviation industry. It contains related examples and real life scenarios. Target Audience * Enrolment Operators * Enrolment Agency Supervisors * Registrar’s Supervisors * Introducers * Technical Support Staff Dependent or Related Modules To read this manual, no prior knowledge about Aviation is required. This is the first Module of the training program on Aviation and is common for all participants. All the following modules presumes that this module has been completed by the participant. ACKNOWLEDGEMENT At the successful completion of this project, I would like to express my sincere gratitude to all the people without whose support this project would not be completed. At the onset, I would like to thank my institute “St. Xavier’s College, Kolkata, the Principal Rev. Fr. Dr. J. Felix Raj S. J. and...
Words: 12613 - Pages: 51
