Fleet Replacement Analysis Assignment

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Sheet1

Allegiant Air Fleet Replacement
Instructions
1. Enter the discount rate (i) in cell C19 (enter as a decimal, e.g., 0.10). The yearly discount factor equal to 1/(1+i)^year is automatically computed and entered in column B.
2. Enter the fuel gallons burned per block hour in cells I19 and O19.
3. Enter the Block Hours per year per aircraft in I20 and O20.
4. Enter the total maintenance cost per block hour in I21 and 021.
5. Enter the seating capacity (number of seats per aircraft) in I22 and O22.
6. Enter the Speed in Miles per Block Hour in I23 and O23.
7. Enter the Purchase Price in I24 and O24
8. Enter the Sale Price in year 16 in I25 and O25.
9. Enter the estimated fuel price for each year in the column C32 through C46.
The spreadsheet will automatically compute: 1) The Discount Factor for years 1 through 16, 2) The total fuel cost for years 1 through 15,
3) total maintenance cost for year one, 4) total operating costs for each year, 5) total net present cost per year, 6) total available seat miles (ASM) for the 15 years,
7) net present cost per seat mile over the 15 year operating plan. The maintenance costs for years 2 through 15 must be computed and entered.
Parameters MD-80 Operating Costs & Statistics A-320 Operating Costs & Statistics
Discount Rate = Gallons/Block Hour = Gallons/Block Hour =
Block Hours/year = Block Hours/year =
Maintenance Cost/Block Hour = Maintenance Cost/Block Hour =
Number of Seats = Number of Seats =
Block hour Speed = Block Hour Speed =
Purchase Price = Purchase Price =
Sale Price in year 16 = Sale Price in year 16 =
MD-80 capital and direct operating cost A-320 capital and direct operating cost
Year Discount Fuel $/gal MD-80 Fuel Maint Total Annual NPV A-320 Fuel Maint Total Annual NPV
Factor Purchase Cost Costs Operating Purchase Cost Costs Operating
0 1.000 0 0 0 0
1 1.000 0 0 0 0 0 0 0 0
2 1.000 0 0 0 0 0 0
3 1.000 0 0 0 0 0 0
4 1.000 0 0 0 0 0 0
5 1.000 0 0 0 0 0 0
6 1.000 0 0 0 0 0 0
7 1.000 0 0 0 0 0 0
8 1.000 0 0 0 0 0 0
9 1.000 0 0 0 0 0 0
10 1.000 0 0 0 0 0 0
11 1.000 0 0 0 0 0 0
12 1.000 0 0 0 0 0 0
13 1.000 0 0 0 0 0 0
14 1.000 0 0 0 0 0 0
15 1.000 0 0 0 0 0 0
16 1.000 0 0 0 0
Net Present Value Cost = 0 Net Present Value Cost = 0
MD-80 NP CASM = 0.00000 A-320 NP CASM = 0.00000

Sheet2

Sheet3