Boston Airlines Case

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Northeastern Airlines is an airline that serves the northeastern cities of the US. It is a regional airline that is currently serving nine cities in the northeastern area. The company has a total of sixteen 122 passenger Embraer E-195 jets serving the area. The cities that Northeastern Airlines provide services include Syracuse, NY, State College, PA, Newark, NJ, Hartford, CT, Providence, RI, Boston, MA, Nashua, NH, Orono, ME and Burlington, VT. Northeastern Airlines provide direct flights to all the cities. In the last years Northeastern Airlines has seen a decline in profit margins, leading the airline to downsize. In order for Northeastern Airlines to continue to serve all 9 cities, they have to make some changes in the way they serve these…show more content…
With the new route, introduce the profit per passenger would be $67. However, in between stops will be made, the first stop would be in State College, PA, then in Hartford, NJ, followed by Nashua, NH, and then landing in Burlington, VT. Although, this flight might have several stops in between, a discount can be given to the customers boarding this flight. Northeastern Airlines want to be able to maintain all of its customers satisfied with the flights as well as with other services such as customer service they receive. Another direct flight that will be cancelled will be Burlington, VT to Orono, ME, the profit per passenger for this flight is $12. In the new route the profit per passenger would be $27. In this new route there would only be one stop in between being in Nashua, NH. The profit per flight compared with this new routes given that flights are at full capacity would go from $1,464 to $3,294, increasing 125%. Another direct flight that would get cancelled with this new route would be Boston, MA to Providence, RI, this flight only gives us a $9 per profit per passenger and $1,098 profit per flight. It is the flight that gives us the lowest profit from all the current routes. In the new route from Boston, MA to Providence, RI, the profit per passenger would increase to $52 giving us a total of $6,344 per flight. Since this flight will not be direct, it will be making stops in Nashua, NH, and Hartford, CT, and landing in Providence, RI. State College, PA to Newark, NJ route will also be eliminated. This route gives us a profit of $14 per passenger. In the proposed route it will give us a total of $33 profit. In order to still serve this city, flight stops have to be made in Hartford, CT to arrive at either location. The direct flight from Syracuse, NY to Hartford, CT will also be

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