Fees Costs - $10M or $1M?

Chinese Chess - Airline Business During COVID-19
New answer on Jan 07, 2021
2 Answers
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Nikita
Proficient
asked on Jan 04, 2021
Manager at PwC UK, Technology Risk practice

Hi Ian,

Thanks for the interesting case!

Should the Monthly Fees in the Exibit 1 be equal to $10M, not $1M? This is as per the calculations provided in the Cost Reduction Calculations section, where we assume Fees to be 10M per month.

Thanks!

Nikita

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Ian
Expert
Content Creator
replied on Jan 05, 2021
BCG | 100% personal interview success rate (8/8) and 95% candidate success rate | Personalized interview prep

Hi Nikita,

My pleasure! I'm glad you enjoyed it :)

That's a great catch! You are indeed correct. So, the new cost savings should be $531.1 ($4.5M lower than the current answer).

I'm having the case updated now. Thanks for pointing this out!

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Clara
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Content Creator
replied on Jan 07, 2021
McKinsey | Awarded professor at Master in Management @ IE | MBA at MIT |+180 students coached | Integrated FIT Guide aut

Good catch :)

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Ian gave the best answer

Ian

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