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Quantitative Analysis - Essay Example
Pages 15 (3765 words)
In the light of increased competition and rise of low fare airlines and discount rates in air charges it is wise to make structural changes that are capable of aligning the cost and revenue structure appropriately. The motto of the change should be the low cost and more revenue with increased efficiency.
Re designing the operations to increase capacity continuing the same number of aircraft can be considered as primary issue. This can increase efficiency and as a consequence reduces congestion in securing seats in piedmont airlines flights. 1
Re modeling and re deploying aircrafts to increase hub operations where there is demand. For example 25% of the passengers traveling in Piedmont flight from charlotte to Boston are paying for another airline to have a connecting flight. If the company is able to introduce the connecting flight it can decrease the loss of market and can save time and charges by issuing tickets from charlotte to the passenger's required destination in charlotte itself.
A detailed structure and decision making process should be developed to decide the number of seats that must be allotted by offering discount and the number that can be allowed in full fare. The seats that are allowed on discount must be open to both stimulators and diverters and no diverter (the person paying full fare must not be dissatisfied due to the reason that a discount seat was allotted to a stimulator after he was rejected on the cause of non availability.
By increasing the number of seats in each aircraft, that is by remodeli ...
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