Route C really profitable?

Hi all,

I stumbled across the answer to question 3, which states that route C is very profitable.

If the break even number of passengers per hour is 70, then we would at least need 140 passengers e.g. in the time between 7-9 to be profitable. But utilization is only 120 passengers, so it does not look profitable.

Am I missing something?

Thanks!

David

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Top answer

Slawomir

Coach

on Aug 22, 2021

Former McK interviewer, PhD who successfully transitioned from Academia, received offers from McK/BCG/Bain/LEK

Hi David,

Perhaps the exhibit shows hourly demand in 2h intervals so you have 120 pax 7-8 and 120 pax 8-9. It would be worth clarifying the unit on the exhibit.

Hope this helps!