INTERNATIONAL AIRPORTS ALLOCATION OF OPERATING REVENUE AND COSTS

Allocatable revenues to the North Atlantic operation at the 13 Canadian airports, produced for the fiscal year 1966/67 a total of $18,160,500 whereas the corresponding total for the allocatable costs emerges as $8,265,140. This points out an allocatable deficit of $104,640. It is noticeable that the allocatable deficit to the North Atlantic operation of the six alternate airports was only $77,918, although the total deficit at these airports was as high as $7,730,118. Thus, the stand-by cost of the facilities at these airports was not allocated at all to the North Atlantic Operation. It might be argued that at least the stand-by cost of the capital investment i.e. the interest and the depreciation should be considered for allocation. It would not be unreasonable to allocate the capital charges of these six alternate airports which added up to $4,184,269, on the basis of the average gross-weight of the aircraft using these airports during the North Atlantic landings over the same period. This works out to an additional cost for allocation that was not included in the table in the order of $3.1M. Another method of allocating alternate airport costs would be add them into one total. From this total cost the alternates total revenues excluding landing fees should be deducted. Finally, the adjusted cost to be multiplied by the radio of the aircraft gross-weight for the North Atlantic landings and the total gross-weight for all landings. For the six Candian alternates in the North Atlantic region, this method produces an allocatable cost to the international service in the order of $1.3M for the fiscal year 1966/67. And the method might be expanded to a theoretical ideal by encompassing international small alternates from all States in the region and the aircrafts total traffic in the region. But it would require a ultilateral agreement among the States. A precedent is likely to occur, because a multilateral agreement might be accomplished in the near future in respect of the charges for the international air routes in general, in view of the fact that it was announced by the Eurocontrol for the European region, effective 1st November 1971.

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• Corporate Authors:

  Royal Aeronautical Society

  4 Hamilton Place
  London S1V 0BQ,   England 
• Authors:
  • Jaworski, A
• Publication Date: 1971-6

Media Info

• Features: Tables;
• Pagination: p. 427-430
• Serial:
  • Aeronautical Journal
  • Volume: 75
  • Issue Number: 726
  • Publisher: Royal Aeronautical Society
  • ISSN: 0001-9240

Subject/Index Terms

• TRT Terms: Aircraft; Airport operations; Capital investments; Cost allocation; Deficits; Depreciation; Finance; International airports; Operating costs; Operating revenues; Weight
• Old TRIS Terms: Allocations
• Subject Areas: Aviation; Finance; Terminals and Facilities; Vehicles and Equipment;

Filing Info

• Accession Number: 00155725
• Record Type: Publication
• Source Agency: Massachusetts Institute of Technology
• Files: TRIS
• Created Date: Aug 31 1977 12:00AM