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2. Per flight: a short-haul flight in Europe
The prompt
A short-haul flight in Europe has 180 seats and flies 85 percent full. Each passenger pays an average fare of EUR 80 plus EUR 20 for extras such as bags and seat choice. One flight costs EUR 4,200 in fuel, EUR 3,000 in airport and navigation fees, EUR 1,800 for crew, EUR 1,200 for maintenance, EUR 2,500 for the aircraft (lease or ownership) and EUR 1,100 of overhead. Does the flight make money, and at what load factor does it break even?
Your interviewer will share data as you ask for it. Ask clarifying questions, state a hypothesis, then lay out your structure out loud before you calculate.
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