Wright Case Study Assignment 6

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School

Saint Leo University *

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301

Subject

Economics

Date

Feb 20, 2024

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docx

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Uploaded by kinacamille

1 The data that was given about the case explains that flights from San Francisco to Washington D.C., the company is struggling financially to cover any costs. Therefore, the cause of the financial struggle is that the revenue is low, and expenses are high. United Airlines could discontinue the flights for those routes. Honestly, I think there are other solutions that will help with United Airlines issues. In 2017, United Airlines flights increased going and coming back from San Francisco. Discontinuing flights will not change the original flight arriving to and from the airport. The fixed costs should not have been added to the cost analysis because the airline’s operations will continue regardless of if they discontinue the flight route. Low revenue accounts for flights going one way. The demand for Washington D.C to San Francisco flights are high. U.S. air transportation is the competition and has a variety of different airlines to choose from. (Heimlich, 2017). For example, people who travel those routes can switch to another airline. Especially if the service is better than the experience they shared with United Airlines. Maintaining the routes and reducing the costs can lead to better revenue. For instance, cutting the costs of food by weighing the portions of food, increasing first class seats and selling them for a higher price and changing the aircraft to a smaller save on fuel and decreases flight attendants. Appeal to every customer to make them feel they are saving even more. References: Heimlich, J. P. (2017). U.S. airline competition has intensified, leading to more air service and lower prices for consumers . Web. United Airlines. (2017). United Airlines increases service between San Francisco and 18 destinations . Web.

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