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Introduction to AIRLINE ECONOMICS - McGill University
www.mcgill.caFixed costs are high, and aircraft remain aloft even when operations fail ... but do not eliminate, capacity; The going-concern value often is greater than the liquidation value of airlines, thereby motivating an infusion of capital into bankrupt airlines ... • Resulting in lower equipment and facilities utilization and higher
Airline Operating Costs and Productivity
www.icao.intAirline Economics: Costs and Productivity 1. Airline Operating Costs • DOT Form 41 Data • Objective vs. Functional Cost Categories • Percentage Break Down of Operating Expenses 2. Functional Operating Expense Comparisons • Flight Operating Costs • Example: B-757 Operating Costs • Cost comparisons across aircraft types 3.