Jet Blue has an evening flight from Orlando
Jet Blue has an evening flight from Orlando to San Jose California with an average of 150 passengers and a return flight from San Jose to Orlando Fla, the next afternoon with an average of 120 passengers. The plane makes no other trip. The charge for the plane to remain in San Jose overnight is $1,200 and zero in Orlando. The Airline is contemplating eliminating the night flight out of Orlando and replacing it with a morning flight. The estimated number of passengers is 140 in the morning flight and 120 in the return afternoon flight. The one-way ticket for any flight is $200. The operating cost of the plane for each flight is $11,000. The fixed costs for the plane are $3,000 per day whether it flies or not. a. Should Jet Blue replace its night flight from Orlando with a morning flight? b. Should Jet Blue remain in business?
