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Airline Decisions

This module’s written assignment should be completed after reading Chapter 4 of your textbook.

Your prompt is as follows:

You are an analyst for United Airlines given the responsibility of making a go / no go recommendation regarding United adding Daytona Beach as a destination. Your recommendation should include the following:

1) A description of the fixed costs and the variable costs related to your recommendation ;

2) A description of the DOC, IOC and NOC issues related to your recommendation;

3) A description of the marginal costs related to your recommendation;

4) A description of the sunk costs related to your recommendation; and

5) A description of economies and/or diseconomies of scale related to your recommendation.

Your 600-800 word submission should 1) demonstrate your understanding of the material covered in Chapter 4; 2) demonstrate that you completed a minimum of 60 minutes of research regarding United Airlines including relevant items including but not exclusive to route system, fleet, etc.; 3) demonstrate that you have an understanding (from personal knowledge, prior or concurrent coursework, and/or online research) of the current commercial airline service available to and from Daytona Beach; and 4) begin with the phrase “Yes, United should add DAB as a destination” or “No, United should not add DAB as a destination,” and then use the remainder of the paper backing up your recommendation using the issues described above.

Your paper does not need to and should not include firm numbers. The paper should demonstrate your thought process leading to your recommendation, backing up this recommendation with facts that show application of Chapter 4 material to the prompt.

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