Leisure Air is a regional airline that provides sendee from Pittsburgh, Newark,

Question

Leisure Air is a regional airline that provides sendee from Pittsburgh, Newark, Charlotte, Myrtle Beach and Orlando. Leisure Air has two Boeing 737-400 airplanes, one based in Pittsburgh and the other in Newark. Both airplanes have a coach section with a 132-seat capacity. Each morning the Pittsburgh-based plane flies to Orlando with a stopover in Charlotte., and the Newark-based plane flies to Myrtle Beach, also with a stopover in Charlotte. At the end of the day, both planes return to their home bases. Leisure Air uses two fare classes: a discount-fare Q class and a full-fare Y class. Reservations using the discount-fare Q class must be made 14 days in advance and must include a Saturday night stay in the destination city. Reservations using the full-fare Y class may be made anytime, with no penalty for changing the reservation at a later date. The itinerary' and fare alternatives that Leisure Air can offer to its customers based on both the origin-destination of each flight and the fare classes are synthetize in the following table. Determine how many discount-fare and full-fare seats Leisure Air should make available in their reservation system to maximize its daily total expected revenue from running the two planes.

Explanation / Answer

Q class = 45+44+56+39 + 16 +13 = 213 seats

Y class = 11+6+7+9+10+8 = 51 seats

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