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Tables 19-29 cover typical Revenue Accounts, Cost
Allocations, Direct Operating Costs (DOC), Indirect Operating Costs
(IOC), Airplane Related Costs, Traffic Related Costs, Annual Related
Expenses, Start Up Costs and Spares Stockage and Provisioning. |
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Table 19. |
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YIELD / NORMAL AIRLINE REVENUE ACCOUNTS |
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Revenue Account |
Generating Medium |
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Passenger |
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Passenger Traffic |
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Freight |
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Freight Traffic |
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Excess Baggage |
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Passenger Traffic |
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Charter |
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Available Aircraft Time |
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Services Performed |
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Maintenance Handling for Other Airlines |
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Leasing Income |
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Lease of Equipment to Other Airlines |
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Table 20. |
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METHODS OF COST ALLOCATION |
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Cash Operation Cost |
(COC) |
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Direct Operating Costs |
(DOC) |
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Indirect Operating Costs |
(IOC) |
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Total Operating Costs |
(TOC) |
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Table 21. |
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DIRECT OPERATING COSTS (DOC) |
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Cost Category |
Variables Affecting Costs |
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Crew |
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Number of Flight Crew |
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Maximum Takeoff Weight |
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Speed |
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Field Restrictions (i.e. Density Altitude) |
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Fuel |
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Block Fuel |
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Fuel Price |
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Trip Distance |
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Maintenance |
Airframe Price |
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Engine Price |
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Airframe Weight |
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Engine Static Thrust |
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Number of Engines |
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Labor Rate |
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Utilization |
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Overhead Rate |
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Insurance |
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Airplane Purchase Cost |
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Annual Utilization |
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Insurance Rate |
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Depreciation |
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Airplane Purchase Cost |
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Depreciation Schedule |
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Investment Spares Ratio |
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Annual Utilization |
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Table 22. |
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INDIRECT OPERATING COSTS (IOC) |
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Cost Category |
Parameters Influencing Costs |
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Passenger Service |
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Load Factor |
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Aircraft Servicing |
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Trip Length |
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Traffic Servicing |
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Block Speed |
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Reservations and Sales |
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Landing Weight |
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Advertising and Publicity |
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Tons of Freight/Mail |
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Ground Property |
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Maintenance Labor Cost |
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Maintenance / Depreciation |
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Etc. |
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General and Administration |
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Table 23. |
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AIRPLANE RELATED COSTS |
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Account |
Related Factors |
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Cockpit / Cabin Crew |
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Crew Compliment |
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Block Hours |
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Crew Salaries |
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Fuel and Oil |
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Fuel Price / Aircraft Performance |
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Mile / Trips Flown |
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Maintenance |
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Labor Rates |
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Aircraft Design and Age |
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Number of Flight Hours |
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Aircraft Service |
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Aircraft Size (Weight / Seats) |
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Number of Departures |
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Salaries / Contract Rates |
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Landing Fees |
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Aircraft Weight |
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Airport Rate Schedule |
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Number of Departures |
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Navigation Fees |
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Miles Flown |
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Government / Airline Cost Schedules |
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Table 24. |
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TRAFFIC RELATED COSTS |
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Account |
Related Factors |
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Traffic Servicing / Reservations / Sales |
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Passengers / Tons Transported |
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Salary Rates |
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Fixed Expenses |
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Variable Expenses |
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Food / Liability Insurance |
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Revenue Per Mile (RPM) Produced |
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Food Cost |
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Insurance Rates |
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Table 25. |
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SYSTEM RELATED COSTS |
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Account |
Related Factors |
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Advertising / Publicity |
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Airline Size |
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General and Administrative |
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Management Philosophy |
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Salaries / Overhead Rates |
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Taxes |
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Government Policies |
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Tax Laws |
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Table 26. |
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ANNUAL (PERIODIC) RELATED EXPENSES |
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Account |
Related Factors |
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Depreciation (Amortization) |
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Original Asset Cost |
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Useful Life |
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Salvage Value |
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Hull Insurance |
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Asset Insured Value |
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Insurance Rates |
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Lease / Rental |
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Original Asset Cost |
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Lease Rates |
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Supplies / Demand |
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Short Term Rentals |
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Finance (Interest) Charges |
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Amount Borrowed |
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Term of Loan |
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Interest Rates |
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Company Financial Rating |
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Lenders Involved |
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Table 27. |
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START UP COSTS |
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Facilities |
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Spares |
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Ground Equipment |
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Tow Tractors |
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Passenger Stairs |
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Toilet Trucks |
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Potable Water Trucks |
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Galley Trucks |
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Cabin Cleaning Trucks |
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Ground Power Units |
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Air Conditioning Units |
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Air Start Units |
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Deicing / Washing Trucks |
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Miscellaneous Tools |
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Training |
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Flight Crews |
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Cabin Crews |
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Maintenance Personnel |
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Other Personnel |
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New Hires |
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Others |
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Ground Training |
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Simulator Training |
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Aircraft Time |
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Out of Production Time (While in Training) |
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Route Training |
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Table 28. |
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STOCKAGE LEVEL (SPARES) |
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Main Base (Rotables, Repairables and Expendables) |
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Line Stations or Flight Kits |
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Insurance Items (Landing Gear, Flight Control Equipment,
Cowlings) |
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General Supplies |
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Spare Engines |
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Spare Modules |
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Engine Parts |
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QEC Parts |
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Engine Overhaul / Repair Location and Flow Time |
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Number of Months Supply of Expendables Stocked |
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Component Overhaul Flow Time |
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Spares Overhead Cost, Their Definition and their
Allocation in Accounts |
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Spares Pooling Agreement with Other Airlines |
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Value of Spares Currently in Stock per Airplane Type |
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Table 29. |
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TYPICAL SPARES PROVISIONING PLAN |
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Engine |
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Airframe |
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Spare Engines |
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Rotables / Airline |
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Engine Maintenance Spares |
Expendable Items / Airline |
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Power Plant Kit for Engine Build Up |
Rotable / Vendor |
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Accessory Items for Engine Build Up not Included in
Power Plant Kit |
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Turbine Reversers |
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Engine Nose Cowl |
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Spare APU (Including Turbine Kit and Accessory Items) |
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