An analytic hierarchy process for ranking operating costs of low cost and full service airlines

Maria Berrittella, Luigi La Franca and Pietro Zito

Journal of Air Transport Management, 2009, vol. 15, issue 5, 249-255

Abstract: This paper develops an application of the analytic hierarchy process to rank the operating cost components of full service and low cost airlines. It takes into account the financial balance sheets and answers to a questionnaire submitted to the managers of selected airlines. The results suggest that the analytic hierarchy process can be appropriately used to obtain the ranking of the costs taking into account different views: financial, management and operative. Rental, office equipment and other supplies costs show the highest importance in the cost ranking, both for full services and low cost airlines. The robustness of the results is tested by Monte Carlo analysis.

Keywords: Full service and low cost airlines; Analytic hierarchy process; Operating costs; Monte Carlo Simulation (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:15:y:2009:i:5:p:249-255

DOI: 10.1016/j.jairtraman.2008.11.006

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