An airline company must plan its fleet capacity and its long-term schedule of ai

Question

An airline company must plan its fleet capacity and its long-term schedule of aircraft usage. For one flight segment, the average number of customers per day is 70, which represents a 65 percent utilization rate of the equipment assigned to the flight segment. If demand is expected to increase to 94 customers for this flight segment in three years, what capacity requirement should he planned? Assume that management deems that a capacity cushion of 25 percent is appropriate. The needed capacity requirement is squarebox customers per day (Enter your response rounded up to the next whole number.)

Explanation / Answer

Current average number of customer/day = 70

Current capacity utilization = 65%

Therefore current capacity = 70/.65 = 107.69 = 108

Demand in 3 years = 94 customers/day

As the management wants a 25% capacity cushion , these 94 customers per day should correspond to 75% (100% - 25%) of the capacity

Therefore , the needed capacity requirements = 94/0.75 = 125.33 = 126

The needed capacity requirements is 126 customers per day.

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