In: Operations Management
The project is about airline revenue and the factors that impact it. All the knowledge you obtain in chapter 4, is enough to do the project.
Revenue of an airline is influenced by several factors, including fuel cost, employees’ salary, operating expenses, maintenance costs, fleet size, available seats. This project aims to find out the influence of some of these factors on revenue for U.S. airline industry for the period of 11 years.
In airline industry one of the variables that represent revenue is “Revenue Passenger mile”.
Attached is the data (revenue passenger mile, fuel cost, salary cost and seat available” of some U.S. airlines for the period of 2005 till 2015. Data has been collected from The Bureau of Transportation Statistics (BTS) database.
Each team should use regression tool to interpret the relation between revenue of airlines and the above mention factors for each year.
Each team should run a regression for each year separately, write the regression equations for each year and compare in which year each of these three factors impacts revenue the most and the least.
Finally, run the regression for whole the period and write the equation line for all observation and interpret the result in terms of the positive/negative influence of factors on revenue.
year |
quarter | carrier_name | Fuel cost (000,000) | Salary (000,000) | Average seat miles (000,000) | Revenue Passenger mile (000,000) | |
2014 | 1 | American Airlines Inc. | 1,820.97 | 1,477.69 | 76,592.08 | 10,582.29 | |
2014 | 2 | American Airlines Inc. | 1,848.52 | 1,519.84 | 79,271.84 | 11,496.72 | |
2014 | 3 | American Airlines Inc. | 1,840.16 | 1,495.73 | 80,899.81 | 11,622.45 | |
2014 | 4 | American Airlines Inc. | 1,482.13 | 1,496.97 | 78,433.03 | 10,982.28 | |
2014 | 1 | Alaska Airlines Inc. | 318.06 | 263.62 | 14,992.37 | 1,963.35 | |
2014 | 2 | Alaska Airlines Inc. | 337.92 | 276.94 | 16,192.17 | 2,171.61 | |
2014 | 3 | Alaska Airlines Inc. | 350.36 | 273.78 | 17,216.43 | 2,289.97 | |
2014 | 4 | Alaska Airlines Inc. | 276.79 | 303.86 | 16,468.02 | 2,116.65 | |
2014 | 1 | JetBlue Airways | 463.85 | 349.19 | 20,852.08 | 2,616.91 | |
2014 | 2 | JetBlue Airways | 497.26 | 335.01 | 22,779.28 | 2,912.92 | |
2014 | 3 | JetBlue Airways | 518.04 | 337.32 | 23,528.60 | 3,064.00 | |
2014 | 4 | JetBlue Airways | 435.77 | 350.32 | 22,896.31 | 2,844.41 | |
2014 | 1 | Delta Air Lines Inc. | 2,191.20 | 2,102.26 | 94,711.96 | 13,460.82 | |
2014 | 2 | Delta Air Lines Inc. | 2,435.70 | 2,425.81 | 109,550.43 | 16,047.02 | |
2014 | 3 | Delta Air Lines Inc. | 2,605.49 | 2,497.92 | 117,821.87 | 17,312.32 | |
2014 | 4 | Delta Air Lines Inc. | 2,089.33 | 2,334.80 | 102,385.74 | 14,608.75 | |
2014 | 1 | Frontier Airlines Inc. | 110.70 | 66.88 | 5,492.58 | 717.32 | |
2014 | 2 | Frontier Airlines Inc. | 129.78 | 66.32 | 6,194.93 | 835.44 | |
2014 | 3 | Frontier Airlines Inc. | 141.63 | 73.47 | 6,775.41 | 925.54 | |
2014 | 4 | Frontier Airlines Inc. | 114.90 | 74.24 | 6,615.24 | 867.83 | |
2014 | 1 | Hawaiian Airlines Inc. | 166.33 | 113.86 | 8,088.18 | 1,110.26 | |
2014 | 2 | Hawaiian Airlines Inc. | 169.00 | 119.24 | 8,530.87 | 1,184.51 | |
2014 | 3 | Hawaiian Airlines Inc. | 175.91 | 120.65 | 9,003.61 | 1,308.91 | |
2014 | 4 | Hawaiian Airlines Inc. | 145.62 | 118.92 | 8,532.93 | 1,234.26 | |
2014 | 1 | United Air Lines Inc. | 2,253.93 | 2,195.92 | 99,562.00 | 13,853.59 | |
2014 | 2 | United Air Lines Inc. | 2,441.23 | 2,247.32 | 110,370.32 | 15,940.16 | |
2014 | 3 | United Air Lines Inc. | 2,450.90 | 2,402.58 | 113,818.75 | 16,561.66 | |
2014 | 4 | United Air Lines Inc. | 1,896.06 | 2,303.82 | 104,371.59 | 14,803.13 | |
2014 | 1 | US Airways Inc. | 817.31 | 756.68 | 37,064.68 | 4,850.37 | |
2014 | 2 | US Airways Inc. | 910.87 | 763.02 | 42,721.22 | 5,714.15 | |
2014 | 3 | US Airways Inc. | 901.44 | 765.47 | 42,797.10 | 5,651.65 | |
2014 | 4 | US Airways Inc. | 667.42 | 713.33 | 37,242.14 | 4,814.87 | |
2014 | 1 | Southwest Airlines Co. | 1,261.24 | 1,340.00 | 55,173.46 | 7,125.78 | |
2014 | 2 | Southwest Airlines Co. | 1,371.67 | 1,472.42 | 63,036.28 | 6,903.57 | |
2014 | 3 | Southwest Airlines Co. | 1,334.88 | 1,435.34 | 63,874.25 | 6,650.69 | |
2014 | 4 | Southwest Airlines Co. | 1,114.16 | 1,459.30 | 63,421.77 | 8,022.97 | |
2015 | 1 | American Airlines Inc. | 1,031.03 | 1,671.86 | 75,923.24 | 10,511.24 | |
2015 | 2 | American Airlines Inc. | 1,149.26 | 1,630.39 | 81,625.00 | 11,659.20 | |
2015 | 3 | American Airlines Inc. | 1,532.77 | 2,545.34 | 126,914.65 | 18,111.60 | |
2015 | 4 | American Airlines Inc. | 1,242.05 | 2,520.90 | 116,283.51 | 16,293.81 | |
2015 | 1 | Alaska Airlines Inc. | 204.36 | 297.90 | 16,695.77 | 2,140.22 | |
2015 | 2 | Alaska Airlines Inc. | 234.47 | 303.97 | 17,970.06 | 2,358.63 | |
2015 | 3 | Alaska Airlines Inc. | 206.33 | 306.99 | 18,559.50 | 2,451.66 | |
2015 | 4 | Alaska Airlines Inc. | 185.06 | 323.65 | 18,609.47 | 2,359.06 | |
2015 | 1 | JetBlue Airways | 334.82 | 396.63 | 22,851.64 | 2,908.46 | |
2015 | 2 | JetBlue Airways | 371.35 | 396.36 | 24,485.83 | 3,166.36 | |
2015 | 3 | JetBlue Airways | 342.23 | 411.56 | 25,991.41 | 3,344.58 | |
2015 | 4 | JetBlue Airways | 299.38 | 423.21 | 25,365.14 | 3,173.57 | |
2015 | 1 | Delta Air Lines Inc. | 2,423.97 | 2,275.25 | 100,342.79 | 14,031.82 | |
2015 | 2 | Delta Air Lines Inc. | 2,177.48 | 2,648.54 | 114,687.64 | 16,430.01 | |
2015 | 3 | Delta Air Lines Inc. | 1,719.52 | 2,884.14 | 122,547.57 | 17,751.82 | |
2015 | 4 | Delta Air Lines Inc. | 1,524.08 | 2,637.46 | 103,295.93 | 14,876.51 | |
2015 | 1 | Frontier Airlines Inc. | 83.79 | 74.48 | 6,865.15 | 871.44 | |
2015 | 2 | Frontier Airlines Inc. | 95.51 | 67.14 | 7,678.22 | 986.09 | |
2015 | 3 | Frontier Airlines Inc. | 84.16 | 65.28 | 7,887.85 | 1,039.46 | |
2015 | 4 | Frontier Airlines Inc. | 70.31 | 106.19 | 8,559.76 | 1,121.54 | |
2015 | 1 | Hawaiian Airlines Inc. | 106.96 | 125.60 | 8,443.48 | 1,195.99 | |
2015 | 2 | Hawaiian Airlines Inc. | 107.87 | 131.09 | 8,863.41 | 1,245.18 | |
2015 | 3 | Hawaiian Airlines Inc. | 101.53 | 132.12 | 9,326.04 | 1,324.22 | |
2015 | 4 | Hawaiian Airlines Inc. | 84.45 | 136.89 | 8,769.90 | 1,260.02 | |
2015 | 1 | United Air Lines Inc. | 1,324.81 | 2,358.19 | 100,228.00 | 14,183.53 | |
2015 | 2 | United Air Lines Inc. | 1,555.46 | 2,562.83 | 114,082.60 | 16,255.15 | |
2015 | 3 | United Air Lines Inc. | 1,402.04 | 2,603.53 | 117,983.54 | 17,112.84 | |
2015 | 4 | United Air Lines Inc. | 1,108.57 | 2,489.05 | 107,618.57 | 15,378.46 | |
2015 | 1 | Southwest Airlines Co. | 833.83 | 1,490.22 | 64,668.39 | 8,178.52 | |
2015 | 2 | Southwest Airlines Co. | 957.47 | 1,685.52 | 73,038.10 | 7,915.15 | |
2015 | 3 | Southwest Airlines Co. | 889.48 | 1,775.64 | 72,807.00 | 7,871.24 | |
2015 | 4 | Southwest Airlines Co. | 753.80 | 1,738.04 | 70,828.09 |
9,374.66 |