Number of planes a medium sized nationalized Air Carrier would have using Top-Down approach. The input given to me was the annual revenue of the carrier.

Question

Accepted Answer

The number of planes a medium-sized nationalized Air Carrier would have can be estimated based on its annual revenue.

The number of planes is typically determined by the carrier's capacity and demand.
Factors to consider include the carrier's route network, frequency of flights, and average passenger load.
Comparing the carrier's revenue to industry benchmarks can provide insights into fleet size.
For example, if the carrier's revenue is similar to other carriers with 50 planes, it may have a similar fleet size.

Accepted Answer

Made clear some assumptions (by asking interviewer) like Revenue will be similar across all days and months. Average flight ticket price was considered. The annual revenue provided for the given financial year was a typical revenue. No ticket cancelling. All planes having equal seating capacity, turnover and passengers seated. Calculated Daily revenue from the annual revenue.

Calculated the daily no. of passengers using avg. ticket price. Then considered the avg flight capacity, flight turnover and avg. percentage of seats empty to arrive at the figure.

Number of planes a medium sized nationalized Air Carrier would have using Top-Down approach. The input given to me was the annual revenue of the carrier.

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