Professor Trever Hale
July 29th, 2015
1. Develop a flight operations map that still serves each of the nine cities, but maximizes the company's profit per passenger.
Northeastern Airlines is an airline company with regional presence that serves 9 cities in the state of New England which includes various cities like New York, Pennsylvania, and New Jersey. The graphical illustration (Figure I below) of the routes of Northeastern Airlines includes a combination of direct non-stop flights for certain routes and routes which require connecting flights for end to end connectivity.
Figure I - Northeastern Airlines - Service Route
The management team of the Northeastern Airlines has been assessing and evaluating various options to bring down costs and improve profitability. As per the regulations of the airline regulatory body, i.e., Federal Aviation Administration, the airline company has to continue its operations by serving at least nine cities. However the regulation does not specify anything on the strategy and other aspects related to the operation. Northeastern Airline presently possesses a larger operation and longer period of operation. The reasons Northeastern Airline was able to still sustain despite depleted profit for a short period could be the accrued profits over years, robust asset holding, strong supplier relationship, larger customer base and an efficient operations which helped it to absorb the losses during this period. The Northeastern airlines route presented the connectivity to numerous cities offered by the airline and the profits in United States Dollars value for each passenger are presented for each of the routes serviced by the airline. For example the route between the cities Boston and Providence and between Providence and Boston deliver only US Dollar nine for each passenger as profits to the airline. For delivering its service for these routes, the airline makes use or...