Highlights ► We investigate the impact of operational performance on airline cost structure. ► We develop distinct operational performance metrics to incorporate into airline cost models. ► The results show that flight activity outside schedule windows, delay and schedule buffers impact airline costs substantially.
Abstract The impact of operational performance on airline cost structure is empirically investigated using an aggregate, statistical cost estimation approach. Two distinct sets of operational performance metrics are developed and incorporated into the airline cost models as arguments. Results from estimating a variety of airline cost models reveal that both delay and schedule buffer are important cost drivers. We also find that flight activity outside schedule windows increases cost, whereas flight inactivity within schedule windows does not. Using the estimated cost models, we predict the cost savings to airlines of “perfect” operational performance, obtaining an estimate in the range of $7.1–13.5billion for 2007.
Impact of operational performance on air carrier cost structure: Evidence from US airlines
Transportation Research Part E: Logistics and Transportation Review ; 48 , 5 ; 1032-1048
2012-01-01
17 pages
Article (Journal)
Electronic Resource
English
Impact of operational performance on air carrier cost structure: Evidence from US airlines
Online Contents | 2012
|British Library Conference Proceedings | 2016
|The impact of Gulf carrier competition on U.S. airlines
Elsevier | 2015
|