A MULTI REGRESSION ANALYSIS OF AIRLINE INDIRECT OPERATING COSTS

In this study the indirect operating costs of domestic trunk and local airlines are analysed through statistical techniques. These costs are segregated into several cost categories according to the Civil Aeronautics Board's classification. Each of the cost category is first analysed graphically to see if there exists a relationship between the cost and a number of variables which characterize the mode of operation. Few examples of the variables selected are, revenue passenger-miles, number of aircraft in fleet, total transport revenue, number of employees at a station and number of revenue passenger enplanements. On the basic assumption that there is a relationship between the cost categories and the selected variables, a multi-regression technique is used to develop simple formulae which provide us with means of measuring the total indirect operating costs on an airline. The estimated versus actual cost charts, in Chapter 10, indicate the accuracy of the formulae developed. The accuracy of the results depends on the accuracy of the data and method of reporting.

  • Corporate Authors:

    Massachusetts Institute of Technology

    Department of Aeronautics and Astronautics, 77 Massachusetts Avenue
    Cambridge, MA  United States  02139
  • Authors:
    • Taneja, N K
  • Publication Date: 1967-5

Subject/Index Terms

Filing Info

  • Accession Number: 00074447
  • 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