Introduction Flashcards
How to “measure” airline schedule quality?
PAX satisfaction
Number of PAX
Network size
Number of destinations
Market shares
Revenue
On time performance
SLF
Aircraft utilisation
Low costs
Profit
What is a good airline schedule?
The most efficient and effective deployment of an airline’s resources while best satisfying potential passenger demand.
What is an airline schedule based on?
Flight schedule
Resource management
Total cost =
Operating cost + Nonoperating cost
Operating cost =
Indirect operating cost + direct operating cost
Indirect operating costs are divided into:
Fixed and variable
Direct operating costs are divided into:
Fixed and variable
Examples for non operating costs
Interest expense
Loss on asset disposals
Affiliates losses
Miscellaneous items (foreign exchange loss)
Examples for indirect operating costs:
Ticketing, sales and promotion
Passenger services
Cargo sales and Handlingstation and ground
General overhead
Administrative overhead
Examples for indirect fixed operating costs:
Facilities and equipment rental
Depreciation
Insurance
Examples for indirect variable operating costs:
Commissions
GDS fees
Catering
Handling costs
Examples direct fixed operating cost:
Aircraft ownership (depreciation, lease rentals, insurance)
Fixed maintenance
Fixed flight crew
Fixed cabin crew
Examples direct variable operating costs:
Fuel and oil
Variable maintenance
Airport charges
ATS charges
Variable flight crew
Variable cabin crew
An airlines main expenses are generated by?
Fuel and oil
Manpower
What are the main 3 factors that affect the airline schedule?
Market and competition
Organization of the firm
Operations of the firm
