PROBABILITY - AN APPLICATION TO PROJECTED AIRLINE CASH FLOW

The Airline Operating Cash Flow Model gives airline and aerospace management a sales, financial and planning tool which will provide data for problem solving in the decision-making process. These data include projected yearly cash flows and other projected airline financial and operating statistics. Insights into the decision-making process can be better achieved through the application of probability theory to various significant variables which are input to the model. An effort is made to provide a measure of the probability of achieving various levels of these significant variables and obtain from them a probability distribution for operating cash flow levels in future years. The analysis of such distributions makes it possible for management to better evaluate the alternative courses of action. The Cash Flow Model uses and related risk analyses are discussed from the viewpoint of both the manufacturer and the purchaser.

• Corporate Authors:

  Douglas Aircraft Company, Incorporated

  3855 Lakewood Boulevard
  Long Beach, CA  United States  90801
• Authors:
  • Glasgall, P T
• Publication Date: 1968-5-2

Subject/Index Terms

• TRT Terms: Airlines; Decision making; Economic models; Financing; Operating costs
• Subject Areas: Aviation; Economics;

Filing Info

• Accession Number: 00073480
• Record Type: Publication
• Source Agency: FLIGHT TRANSPORTATION LABORATORY, MIT DEPT. OF AERONAUTICS AND ASTRONAUTICS
• Report/Paper Numbers: None
• Files: TRIS
• Created Date: Sep 5 1974 12:00AM