Browse by Stream
QnA
Home
QnA
Go To Your Study Dashboard

Get Answers to all your Questions

header-bg qa
  • Home
  • Management
  • Directions for question: Mr Vinay Dube, the CEO of Akasa Air, decided to reinforce his fleet of aircrafts to pump up the profitability of Akasa

Directions for question:

Mr Vinay Dube, the CEO of Akasa Air, decided to reinforce his fleet of aircrafts to pump up the profitability of Akasa Air. However recession was round the corner, and being the intelligent entrepreneur that he was, wanted to do so at the minimum cost to the Akasa Air capital. So he initiated a reconnaissance of the condition of the then defunct Kingfisher Airlines (KFA) aircrafts lying at the various airports of India, with the aim of buying them from the Airport Authority of India and the tax authorities, who would be more than willing to auction them at a nominal cost to any buyer who would be remotely interested. He would then repair them to make them airworthy, and use them in the Akasa Air fleet. The repairing was the actual big budget expense that would have to be undertaken.

The result of the reconnaissance yielded the fact that there were ten modern Airbus jet airliners of A319 and A380 version of Kingfisher Airlines (KFA) which were in very decent condition and could very well be used after repairs of the issues created by lack of usage for a very long time. The ten aircrafts were coded with the English letters from A to J. 

The maintenance engineers submitted a survey report to Mr Dube on the estimate of the expenditure behind repairs of the aircrafts A to J. All the expenditures behind repairs (in Rs crores) of each aircraft were integral. The repairs with an estimated cost of rupees ten to twenty crores were termed as ‘minor repairs’, that of rupees thirty to forty crores as ‘medium repairs’ and that of rupees fifty to sixty crores as ‘major repairs’.

The report was in the form of a Scatter Graph as shown below :

The report also stated that :

a) Aircrafts coded A, C, E, G and I would not need minor repairs, aircrafts coded B, D, F, H and J would not need medium repairs and aircrafts coded C, F and I would not need major repairs

b) Aircrafts coded D to I would need different repairing costs

c) Aircraft coded G needed the maximum and aircraft coded H the minimum repairing expenditure.

Question:

In the postscript of the report there were two added statements :

i) Four of the ten aircrafts of A to J code were A380 Airbuses, and needed a total of rupees two hundred crores for repairs

ii) Only one of the aircrafts of A to E code was an A380 Airbus

What was the estimated cost of repairing aircraft coded I (in Rs crores) ? 

 

Option: 1

30


Option: 2

-


Option: 3

-


Option: 4

-


Answers (1)

best_answer

From the data given, it can be concluded that :

 

Aircraft Code

Repair type

Estimated repairing cost (Rs crores)

A

Medium 

30

B

Minor 

10/60

C

Medium

30

D

Major 

50

E

Medium 

30/40

F

Minor

20

G

Major

60

H

Minor

10

I

Medium

40/30

J

Major 

60/10

The extra postscript data informed :

i) Four of the ten aircrafts of A to J code were A380 Airbuses, and needed a total of rupees two hundred crores for repairs

ii) Only one of the aircrafts of A to E code was an A380 Airbus

For both point (i) and (ii) to be applicable, the only possible combination of A380 Airbuses could be aircrafts coded D, G, I and J, but only if the repairing cost of aircraft coded J was Rs 60 crores and the repairing cost of aircraft coded I was Rs 30 crores, as 50+60+30+60 = Rs 200 crores.

Hence, the estimated cost of repairing aircraft coded I was Rs 30 crores

 

Posted by

Kuldeep Maurya

View full answer

Similar Questions

Trending Articles/News

anam-khan

IIM Bodh Gaya announces MBA admission policy 2025; gives 45% weightage to CAT 2024 score
anam-khan

CAT 2024: Delhi HC junks plea over error in exam results
anam-khan

CAT 2024 cut-off for IIM Bangalore, Lucknow, Ahmedabad, Calcutta interview calls; MBA selection process

Latest Question