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    Chapter 12. Aircraft Operating Costs and Profitability

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    raul yondo
    This chapter provides an overview of airline operating costs and profitability analysis. It introduces readers to airlines' direct and indirect costs as well as overhead costs. Some factors that affect airline costs include sector length, aircraft utilization, fleet size, labor costs, aircraft size, speed, age and crew complement. The chapter also discusses cost comparison parameters and metrics to analyze airline profitability.

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    Chapter 12. Aircraft Operating Costs and Profitability

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    raul yondo
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    This chapter provides an overview of airline operating costs and profitability analysis. It introduces readers to airlines' direct and indirect costs as well as overhead costs. Some factors that affect airline costs include sector length, aircraft utilization, fleet size, labor costs, aircraft size, speed, age and crew complement. The chapter also discusses cost comparison parameters and metrics to analyze airline profitability.

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    This chapter provides an overview of airline operating costs and profitability analysis. It introduces readers to airlines' direct and indirect costs as well as overhead costs. Some factors that affect airline costs include sector length, aircraft utilization, fleet size, labor costs, aircraft size, speed, age and crew complement. The chapter also discusses cost comparison parameters and metrics to analyze airline profitability.

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    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    18 views1 page

    Chapter 12. Aircraft Operating Costs and Profitability

    Uploaded by

    raul yondo
    This chapter provides an overview of airline operating costs and profitability analysis. It introduces readers to airlines' direct and indirect costs as well as overhead costs. Some factors that affect airline costs include sector length, aircraft utilization, fleet size, labor costs, aircraft size, speed, age and crew complement. The chapter also discusses cost comparison parameters and metrics to analyze airline profitability.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Chapter 12.

    Aircraft Operating Costs and Profitability

    In Camilleri1, M.A., Travel Marketing, Tourism Economics and the Airline Product: An
    Introduction to Theory and Practice, Edition: 1, Chapter: 8, Publisher: Springer, Milan, Italy.

    Abstract

    The airlines’ marketing policies are influenced by costs and expenses which could influence
    their levels of service and their ability to be profitable. Their direct and indirect operating costs
    are affected by sector length; utilisation of aircraft, fleet size and labour costs, among other
    issues. Moreover, the aircraft design characteristics, such as aircraft size, aircraft speed, age of
    the aircraft, crew complement could also affect the airlines’ cost structure. Furthermore, the
    airlines may have overheads, including; sales costs, administration, accounts, general
    management and employment costs, among others. Therefore, this chapter provides a detailed
    overview of airline operating costs and explains how to analyse their profitability. Initially, it
    introduces its readers to the airlines direct and indirect costs, as well as overheads. Afterwards,
    it deals with cost comparison parameters and metrics.

    1
    Department of Corporate Communication, Faculty of Media and Knowledge Sciences, University of Malta,
    Msida, MSD2080, MALTA. Email: Mark.A.Camilleri@um.edu.mt

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