The Costs of Airline Service - The Short-Haul Problem

Eva Endrizalová, Vladimír Němec

Abstract


Cost of airline service consist of many parameters, including load factor, which is important for airline decision making. Short-haul flights compete with many other ways of transportation on short distances which makes demand very sensitive. This brings up the question how to set optimal costs for short haul flights.

Keywords


costs of airlines; short-haul problem; operating costs; seat-mile costs; breakeven load factor

References


Holloway, S.: Straight and Level: Practical Airline Economics, 3th Ed.. 2008. ISBN 978-0-7546-7258-6

CAPA – Centre for Aviation: Airline Leader (online magazine). Available at: http://www.airlineleader.com/this-months-highlights/the-battle-for-supremacy-in-europe-s-short-haul-markets

O´Connor, William E.: Introduction to Airline Economics. 2001. ISBN 0-275-96911-8

Ferenc, J. – Koščák, P. – Petruf, M. – Krchová, L.: Ekonomika prevádzky letísk. LF TUKE. 2011. ISBN: 978-80-553-0704-6

A4A Quarterly Cost Index: U.S. Passenger Airlines. Available at: http://www.airlines.org/Pages/A4A-Quarterly-Cost-Index-U.S.-Passenger-Airlines.aspx


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Copyright (c) 2014 Eva Endrizalová, Vladimír Němec

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