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Airline Economy Case Study

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LITERATURE REVIEW
“Identifying airline cost economies: An econometric analysis of the factors affecting aircraft operating costs” Paper by Joost Zuidberg has shown the results of an econometric analysis of the influences of airline characteristics on the average operating costs per aircraft movement. The analysis combined a comprehensive selection of airline-output variables, airline-fleet variables, and airline-market variables. The results confirmed the existence of economies of density, economies of load factor, economies of aircraft utilisation and economies of aircraft size.

The regression results suggested that airlines that use newer aircraft and passenger airlines that also operate full freighters have higher average operating costs per aircraft movement. This was due to the fact that the ownership costs (depreciation and leasing costs) of new aircraft outweighed the …show more content…

Within this framework, the trade-off between fuel savings and three other variables were explored- the number of line-of-flight changes, the number of schedule changes and the combined aircraft utilization. The resulting Pareto-efficiency curves served as a decision management tool to allow operations managers to determine the most desirable level of fuel savings, while choosing either an acceptable number of changes to a pre-existing schedule or setting a minimum aircraft utilization level.

“Airport logistics- A case study of the turn-around process” paper by Anna Norin, Tobias Andersson Granberg, Di Yua, and Peter Värbrand has shown that optimizing the de-icing schedule at Stockholm Arlanda airport, while taking the total airport performance into consideration, enables the reduction of delays and waiting times. For practical implementation, it was necessary for de-icing operators to obtain accurate and up-to-date information regarding arrival and departure times, e.g., through collaborative

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