AvAir, a regional airline, reported miles flown data as shown in Table 1, below. In January 2002 AvAir added aircraft to its fleet and changed the method of scheduling maintenance.
REVENUE SEAT MILES (000's) AVAILABLE SEAT MILES (000's)
|
2006 2007 2006 2007 January
|
10,584
|
13,330
|
16,100
|
18001
|
|
February
|
11,100
|
13,900
|
16,040
|
17940
|
|
March
|
11,500
|
14,145
|
16,010
|
17,932
|
|
April
|
12,050
|
14,895
|
15,900
|
17,920
|
|
May
|
12,550
|
15,110
|
15,890
|
17,898
|
|
June
|
12,910
|
15,892
|
16,025
|
17,863
|
|
July
|
13,180
|
16,100
|
15,925
|
17,810
|
|
August
|
13,100
|
16,010
|
15,843
|
17,765
|
|
Sept.
|
13,106
|
15,991
|
15,861
|
17,722
|
|
October
|
12,900
|
15,900
|
15,832
|
17,660
|
|
November
|
13,001
|
19,952
|
15,815
|
17,625
|
|
December
|
13,050
|
16,012
|
15,804
|
17,540
|
a. Review the data and suggest area(s) where problems or discrepancies may exist.
b. Which forecasting method, from among those discussed in the text and in class, best predicts revenue seat miles (RSM), and available seat miles (ASM)? Justify your answers.
c. If no additions are made to the AvAir's fleet or practices, when do you predict that AvAir will no longer be able to increase revenues from passengers? Assume that non-revenue passenger miles are 5% of revenue miles.