COST ECONOMICS OF AIRCRAFT SIZE

The authors use a translog model to develop an econometric cost function to measure the cost of operating aircraft and find that, based on stage length, there is an optimal aircraft size. The way the pilot unit cost is treated is crucial to the calculations. Their analysis is aimed more at how many flights are needed for optimal performance, which is a concern to policymakers since airport infrastructure is difficult to expand appreciably because of technical and political constraints. If airlines choose to increase flight frequency rather than aircraft size, that will have significant impacts on airport planners' decisions. It appears that most growth will be accommodated by adding flights, even in dense markets. By studying the economies of aircraft size, it may be possible to identify policy levers that, with modest changes, could steer airlines away from the frequent-flight solution. The authors found, however, that current practices, particularly wage scales that force airlines to share productivity gains obtained by larger planes with labor through lay scales tied to size, support the airlines' decision to add more flights.

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  • Corporate Authors:

    University of Bath

    Claverton Down
    Bath, Avon  United Kingdom  BA2 7AY
  • Authors:
    • Wei, W
    • Hansen, M
  • Publication Date: 2003-5

Language

  • English

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00963473
  • Record Type: Publication
  • Source Agency: UC Berkeley Transportation Library
  • Files: BTRIS, TRIS
  • Created Date: Oct 2 2003 12:00AM