An airline company must plan its fleet capacity and its long-term schedule of aircraft usage. for one flight segment, the average number of customers per day is 70, which represents a 65 percent utilization rate of the equipment assigned to the flight segment. if demand is expected to increase to customers for this flight segment in three years, what capacity requirement should be planned? assume that management deems that a capacity cushion of 3030 percent is appropriate.

132 customers per day

Explanation:

Given;

Average number of customers per day = 70

Utilization rate of the equipment assigned to the flight segment = 65%

Expected increase in demand = 99

capacity cushion = 30%

Now,

Capacity of cushion = 100% - Utilization rate

or

30% = 100% - utilization rate

or

Utilization rate  = 100% - 30% = 70%

Also,

Utilization rate =

or

70% =

or

Maximum capacity =  

or

Maximum capacity = 132 customers

Hence, the capacity requirement is 132 customers per day

this business is a price setter.

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