Only 2-4 Paragraphs Spirit Airlines Currently Has A Daily Fl

Only 2-4 Paragraphsspirit Airlines Presently Has A Daily Flight From M

Only 2-4 Paragraphsspirit Airlines presently has a daily flight from Minneapolis to Green Bay which accommodates presently the many Packer fans that live in both cities! The flight runs peak especially on weekends when the Packers have a football game at home on Lambeau Field! (Note that Lambeau Field is the main attraction in Green Bay.) Address the following questions: Consider and individually list the costs that Spirit Airlines would incur on each flight from Minneapolis to Green Bay. As part of your listing, identify each individual cost as either a variable or a fixed cost. Spirit is trying to decide whether this flight should be dropped or not. Determine (specify) which of the costs are likely to be saved if this flight is dropped. Set up your initial response as follows: Cost Variable or Fixed Cost Saved if Flight is Dropped Rationale

Paper For Above instruction

Spirit Airlines operates a daily flight service from Minneapolis to Green Bay, primarily serving Packer fans traveling to games at Lambeau Field. To analyze whether to continue this route, it is essential to consider the different costs associated with each flight, classify them as either fixed or variable, and determine which costs can be saved if the flight is discontinued.

The costs incurred by Spirit Airlines on each flight from Minneapolis to Green Bay can be categorized into several key components. These include fuel costs, crew wages, maintenance expenses, landing and airport fees, aircraft depreciation, and variable costs such as in-flight services and catering. Fixed costs encompass aircraft ownership or leasing costs, overhead expenses such as administrative salaries and marketing, and permanent maintenance reserves.

Fuel costs are a variable expense; they fluctuate with flight distance, aircraft weight, and prevailing fuel prices. Crew wages for pilots and flight attendants are typically considered fixed per flight, although they can vary with overtime or additional staffing needs. Maintenance expenses may have fixed components, such as scheduled maintenance, but also include variable elements depending on aircraft usage and repairs. Airport fees for landing and gate usage are variable in proportion to flight frequency but can also involve fixed contractual arrangements. Aircraft depreciation is generally a fixed cost, spread over the aircraft's useful life, regardless of flight frequency.

If Spirit Airlines were to drop this route, certain costs could be eliminated or reduced. Variable costs like fuel, in-flight services, and airport fees would be directly saved, reducing per-flight expenses. Fixed costs such as aircraft lease or ownership payments, and some maintenance and administrative expenses, may continue regardless of flight operations, thus not being entirely saved if the route is discontinued. Determining the specific savings helps assess whether halting the flight is financially prudent, especially during off-peak times when passenger demand is lower.

In conclusion, a clear understanding of the cost structure for this route—distinguishing between fixed and variable expenses—guides Spirit Airlines' decision on whether to continue or drop the Minneapolis-Green Bay flight. Carefully analyzing which costs would be saved allows the airline to evaluate the route's profitability and optimize operational efficiency, especially considering seasonal fluctuations and fan travel patterns during Packers' game days.

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