Question

Problem 1
A-one airline wants to determine the best mix of passengers to serve each day. The airplane seats 25
people and flies 8 one-way segments per day. There are two types of passengers: First class and
economy. The cost to serve each first class passenger is Rs. 1500 per segment and the cost to serve each
economy passenger is Rs. 1000 per segment. The marketing objectives of the airplane owner are to carry
at least 13 first class passenger-segments and 67 economy passenger-segments each day. In addition, in
order to break even, they must at least carry a minimum of 110 total passenger-segments each day.
Solve the above problem as a linear programming problem. Use graphical method to find the solution.​

Answer 1

Step-by-step explanation:

This is true in the airline industry more than in just about any other industry. The cost of airfare is incredibly dynamic, and is all about what consumers are willing to pay, rather than how much they should pay to cover their “fair share.” It’s the same reason two people sitting next to one another in economy could have paid exponentially different fares.

While there are lots of businesses with variable pricing depending on the product you buy, I can’t think of another industry where you can have such a drastic price difference for two people getting exactly the same product.

Not many people pay for full fare first class

The reality is that very few people pay for full fare first class. I can’t speak on behalf of all airlines, but I’ve had a few friends at some airlines show me numbers, and you’d be surprised by how few people are actually booked on full fare tickets (or maybe you wouldn’t be surprised). So those $25,000 tickets? Very, very few people are actually paying those kinds of fares.