EL DORADO

The participant has to overcome the following objectives:-

 To choose his cities where he wants to set up his airlines and network them.
 He has to do this after keeping in mind the population, per capita income and the relief factors
that have been provided in the three maps given.
 He has to try to cover the maximum people who want to travel in a particular year (present).
 He has to collect the maximum revenue he can after perfecting his model.
 Proper scheduling of the planes has to be done so that minimum number of planes can be used.
Show the time table that you are using for the planes that you use.

These are the data and the constraints that are provided:

Grid square length = 30 X 30 kms

Capital given to Participant= $ 200 billion

Cost of operating an aerodrome/month= Fixed Cost + Variable Cost

Fixed Cost $500000 X Relief Index Factor

Variable Cost

Maintenance Cost Number of planes taking off X Relief Index Factor X 1000$

White Petrol Number of planes taking off X (Distance between landing port) X Liters/km X CWP

Cost of white petrol ( CWP )=$ 1.6/liter [During Offseason it becomes 1.2 times]

Cost of Airplanes :

TYPE SEATS PRODUCTION COST(M $) Liters/km

JUMBO JETS(FAMILIES) 450 15 18
PASSENGER JET 250 10 15
BUSINESS JET 30 6 12
AIR FARE

The Government has restricted the air fares according to the following rule to avoid discrepancies-

The air fare would depend on the train fares of the country.

Train Rates

DISTANCE (KM) FARE (IN $)

<500 30
500-749 40
750-999 50
1000-1499 80
1500-1999 120
2000-2249 150
2250-2499 180
>2500 200

CITY CODE RELIEF FACTOR INDEX PCI INDEX

Population Index
A 2.2 1.0
0.5 1.2
A1 2 1.2
B 1.8 0.7 0.75 1.4
B1 2.2 0.9 0.9 1.7
C 2 1.1 1 2
C1 1.9 1.5
D 1.4 0.8
D1 1.3 0.8 Thus,
E 1.2 1.0
The Average Air Fare between two
E1 1.3 0.8
regions = 3 times the train fare for
E2 1 0.7 distance< 500 km and for others, its
F 1.7 1.3 (3x – 10%of 3x). [x is train fare]
F1 1.6 1.5
G 1.8 0.9 This is the minimum air fare. If you
G1 1.7 0.8 increase the average fare by 10%,
H 1.1 0.4 for every 10% rise, there will be 10%
H1 1.1 0.8
reduction in the number of people
I 0.9 0.4
travelling in the plane (passenger
I1 1.0 0.7
J 1.1 0.8 and jumbo jets).This will be your
J1 1.2 0.7 chosen air fare.[the number of
K 0.9 0.8 people travelling has a formula given
K1 1.1 0.7 later]
CAPITAL 1.2 0.5
Actual Air Fare = Chosen Air Fare X [0.3(I.F.A + I.F.B) Relief + 0.5[3-(I.F.A + I.F.B) Pop] + 0.75(I.F.A + I.F.B) P.C.I]
1.5

ASSUMPTIONS:

1) You have to calculate the annual revenue collected by the Airlines Company (from January to
December).

2) INDEX - The three indices are given (Relief Factor Index (I.F.REL), Per Capita Income Index (I.F.PIC),
and Population Index (I.F.POP)) as a comparative measure among the different cities. Using them in
the formulae reflect their effects on the different measures like Air Fare, Number of people Travelling
etc.

3) The Climate Assumptions :

a) They will come into role because throughout the year, i.e.; the people travelling at different
areas should change according to the climate.

i) For example, the people travelling from hotter areas during summers would be more and to
hilly stations for tour would be least during winter in the respective cities.

ii) In rainy days, the percentage of people not preferring flight in those areas would also be
more due to the risk factor/cancelled flights coming in.

b) The offseason can be calculated by the following formulae :

SEASON OFFSEASON ONSEASON

WINTER [(I.F.Rel -1) X100] days (For Hilly Areas) The Number of people travelling doubles
in tourist spots in hilly areas.
SUMMER [(I.F.Rel -1) X100] days (For Desert areas) The Number of people travelling doubles
in other tourist spots.
RAINY [(I.F.Rel -1) X100] days (For Rainy Areas) Remains the same as average month
Number of days in offseason=Number of days in on season

Consider a year to be of 360 days, with each month 30 days. During Off Season, there is 10%
increase in the fares in the affected areas.

Also, [(2-I.F.Rel) X 100] % of the normal population travels during offseason.

4) Fluctuations in Air Fares

a) The air fares change with time.

i) For example: Assume the air fare to be at its peak the month the flight takes off. If he would
have booked the flight tickets the previous month, he would have got a discount of 10%.
ii) A person is allowed to make reservations 5 months (max) before the flight.

b) If for a following month, there are ‘X’ number of people who go to tourist spots, then 25% of the
total would have bought the flight tickets 5 months back,15% would have bought 4 months
back, and so on as shown below.

c) Whereas if a person is travelling to cities having high business activities (I.F. >1.2), the
percentage values for 5 months would be shown as below.
 d) The air fares for cargo flights would be fixed.

5) Route Cost=License Cost + Distance Cost

a) License Cost /Year =

(Different for different jets)

b) Distance Cost = Distance X $ 800

6) The frequency of planes going from one place to another has to be constant for at least a month.

7) Even if you pass a block diagonally/partially, you have to consider it as one block.

8) Number of People Travelling daily = 0.03 % of the total population of the territory X

a) This is then divided in the ratio 6:4 (Capital : city)and 5:2.5:2.5(Capital : city : city) depending on
the number of cities (2 or 3 respectively).

b) A territory’s capital is the city marked with a bigger circle, whereas the one marked with a
smaller circle is a town.

c) The town marked with the largest circle is the country capital.

9) Consider the average speed of a plane to be 700 km/hr.

What you have to do?

1) First, download the maps and view the statistics provided there. There are 2 maps, a population
map and a relief map.
2) On both the maps show the cities where you want to set up the airlines network. Also show the
routes that you wish to choose for the network.
3) Notify the number of each type of plane that you wish to produce.
4) Show the scheduling of the Airlines network. The scheduling has to be same for a particular
month and should be periodic within a particular month.
5) Compute the total airfare collected within a year, also giving the number of people travelling in a
year.
6) Show the frequency of the planes in all the months, including the offseason days.
7) Give an explanation of all the assumptions taken by you as well as show the calculations in a
excel sheet which will be provided later.
8) The tourist spots have been specified in the relief map.

For queries,
Contact

Amit Swain
Core Team Head, Events Management
Kshitij 2011
+91 9883424189
amit.swain@ktj.in