Ac airways offers low cost air travel between philadelphia, Ask an Expert

Management Studies

AC Airways offers low cost air travel between Philadelphia and Atlantic City utilizing 4 planes worth a total of $12,000,000. Each plane, capable of carrying 60 passengers, makes 6 daily trips from Philadelphia to Atlantic City and 6 back from Atlantic City to Philadelphia. The price is $100 per one-way ticket. The current load factor is 65%. The annual cost of operation is $65,000,000 (labor, fuel, marketing, etc.). The company operates 365 days per year.

Compute the current ROIC.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92030528

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