Principles of Corporate Finance
Principles of Corporate Finance
13th Edition
ISBN: 9781260465099
Author: BREALEY, Richard
Publisher: MCGRAW-HILL HIGHER EDUCATION
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Chapter 11, Problem 21PS
Summary Introduction

To discuss: Reason of flying older models makes money while competitors are flying newer planes.

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Is it possible for the airline to increase their ticket price further? How will it affect their revenue?
What drives the basic economies of the airline industry? The refining industry?2. How is Delta different from other airlines?3. How would owing the Trainer Refinery help Delta manage its fuel costs in the future? Is this offset by operation cost?4. What impact does buying an oil refinery have on Delta as a company? Is this a good strategic move? Why/why not?5. How does the merger between Delta and Virgin Airlines impact the company as a whole?
It is often said that the variable cost associated with a passenger of a low-cost airline carrier such as EasyJet or Ryanair is zero and this allows the airline to offer flights to customers at a very low price or even free. Explain whether you agree with this statement.
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