This document provides a case study analysis for the CEO of Mega Airlines. It analyzes key metrics such as average ticket prices, revenue by flights and routes, and fuel costs. The highest average ticket was $5,500 on 24 flights using certain aircraft, while the lowest was $115 on 348 flights. 144 flights had the lowest total revenue of $17,078. 4 flights earned the highest revenue of nearly $1 million. Certain routes contributed over 5-10% of total revenue while others were under 3%. The B737 aircraft type had the highest fuel cost per mile. Establishing a new Chicago to Atlanta route was not recommended based on the analysis.

1. MEGA AIRLINES – CASE STUDY FOR CEO
Version 3.0, April 2017
VIKRAM GOPALAN

2. AGENDA
Average Ticket Price – High vs. Low
Revenue by Flights – High vs. Low
Revenue by Flight Route and Fuel Cost – High vs. Low
Chicago - Atlanta Route Options
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4
5
6
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3. TICKET PRICES
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4. HIGHVSLOW–AVERAGETICKETPRICE
Average ticket prices of Flights - Chart
Flights with the highest average ticket price
Highest Revenue Stats
Highest avg. ticket
price:
$5,500
Aircraft types: A319, A320, B737
No. of flights: 24 out of 9636
% of flights: 0.25%
Flights with the lowest average ticket price
Lowest Revenue Stats
Lowest avg. ticket
price:
$115
No. of flights: 348
% of flights: 3.6%
• Highest Average Ticket:
o 24 out of 9636 flights have a highest average ticket cost of USD 5,500
o 3 of the aircraft types holds this highest average cost
• Lowest Average Ticket:
o 348 out of 9636 flights have a lowest average ticket cost of USD 115
o 3.6% among the total flights holds this lowest average cost
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5. REVENUE BY FLIGHTS
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6. HIGHVSLOW–REVENUEBYFLIGHTS
Flights with the highest and lowest total revenue - Chart
Flights total revenue - Stats
Comparison Chart Stats
Lowest revenue: $17,078
No. of flights: 144 out of 9636
% of flights: 1.5%
Highest revenue: $915,750
Flight ID’s:
Flight8202, Flight8279,
Flight6243, Flight1819
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
Flight8202
Flight102
Flight7859
Flight9290
Flight5283
Flight6788
Flight698
Flight7082
Flight1309
Flight2493
Flight1846
Flight6330
Flight7630
Flight8827
Flight5337
Flight285
Flight5957
Flight3672
Flight8693
Flight5911
Flight1104
Flight1945
Flight9331
Flight4370
Flight273
Flight7225
Flight2261
Flight8464
Flight5113
Flight3115
Flight3293
Flight785
Flight1342
Flight98
Flight2942
Flight4783
Flight6965
Flight4019
Flight1668
Flight1623
Flight1192
Flight5938
Flight1921
Flight2455
Flight5839
Flight463
Flight6928
Flight4083
Total Revenue by Flight
Total
Summary
• There is a drastic difference in revenues
between the flights of highest and lowest
revenues
• 144 of the total 9636 flights are earning the
lowest
• Highest revenue of nearly 1 Million USD is
earned by 4 of the flights
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7. REVENUE BY FLIGHT ROUTES
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8. HIGHVSLOW–REVENUEBYFLIGHTROUTE
Fuel costs per miles based on aircraft type
Aircraft Type
Sum of Fuel-Cost-Per-
Mile (In USD)
A319 271.03
A320 102.37
B737 373.26
Grand Total 746.66
Summary
• Lowest Revenue Routes: There are 7 flight
routes which contributes less than 3%
each to the Total revenue
• Highest Revenue Routes: There are 9
routes which contribute between 5-10%
each to the Total revenue
• Fuel Cost: Aircraft type B737 costs more
per mile, whereas the Cheapest being A320
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
9.00%
10.00%
Max Total Revenue, 9.63%
RevenuePercent
Flight Routes
Total Revenue split by Flight Routes
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9. CHICAGO-ATLANTAROUTEOPTIONS
CHICAGO – ATLANTA ROUTE OPTION: WHAT IS RECOMMENDED?
Summary Information
Average annual profit ($7,922,014)
Probability of profit 0%
Establish the route? NOT RECOMMENDED
Recommendation:
• Invest to Improve existing Technology
• Add more Reps to increase current Sales
• Introduce Process Improvement Plan
WHY?
Input Parameters - ORD to ATL
Passengers 170
Miles 510
Revenue per
Passenger
$150
Cost per Mile $40
Total Revenue $25,500
Total Costs $20,400
Profit per Flight $5,100
HOW?
Likelihood
bins
Passengers
per Flight
Annual Passenger
Revenue
0% 150 $8,662,500.00
41% 175 $10,106,250.00
71% 185 $10,683,750.00
91% 135 $7,796,250.00
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10. TRIVIA
TRIVIA
AIRLINE QUALITY RATINGS:
1.On-time Performance
2.Customer Complaints
3.Mishandled Baggage
4.Denied Boarding's
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11. QUESTIONS
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