COST FORECASTING FOR INTERNATIONAL AIRLINE OPERATIONS

Cost models are constructed and calibrated to describe airline operating costs in selected international markets. These models are then used to demonstrate how operating costs can be forecast for relatively short time horizons, such as three years. The models confirm the concept that operating costs in different markets of the world air transportation system are significantly different. The reasons for this include the geographic characteristics of the different markets in terms of stage lengths and network structure and the differences in input prices for items such as fuel and labor. Fleet mix is also an important determinant of operating costs. The use of wide-body aircraft is seen to have a significant impact on reducing airline operating costs. Recently, operating costs have tended to decline in real terms but to increase in current terms. The forecasts made for a three-year period indicate that these trends might continue. These forecasts, however, are strongly dependent on assumptions regarding fuel prices. (Author)

Media Info

  • Media Type: Print
  • Features: Figures; References; Tables;
  • Pagination: pp 15-24
  • Monograph Title: Aviation forecasting, planning, and operations
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00311191
  • Record Type: Publication
  • ISBN: 0309029872
  • Files: TRIS, TRB
  • Created Date: Jun 26 1980 12:00AM