Airline cost drivers: cost implications of fleet, routes, and personnel policies

Seristö, Hannu and Vepsäläinen, Ari P.J.

Journal of Air Transport Management, 1997, vol. 3, issue 1, 11-22

Abstract: The aim of the study is to define the factors that offer cost reduction possibilities in airline operations and to assess the impact of different cost reduction measures. It is concluded that fleet structure, route network and company policies on remuneration and work rules are the key factors affecting indirect operating costs, which, in turn, determine the total cost differences between airlines. Particularly for small and medium-sized carriers, concentration with sufficient volume in some traffic type—short-haul, medium-haul or long-haul—would appear to produce marked cost savings. Most airlines would benefit from a more uniform fleet structure and more flexible work rules.

Keywords: airline costs; cost reduction (search for similar items in EconPapers)
Date: 1997
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jaitra:v:3:y:1997:i:1:p:11-22

DOI: 10.1016/S0969-6997(97)82788-3

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