Table of Contents
Airline Economics and Planning
Presentation Outline
PPT Slide
Economic Influence on Air Travel
Contribution of Civil Aviation
PPT Slide
Deregulated & Liberalised environment
Shift from operational requirements to market segment requirements
Regional distribution of schedule traffic -1998
What does success depends on ?
Extent of innovations
What determines profit optimisation ?
When do people not prefer to fly ?
Market Demand
Measures for calculating demand
Determinants of Demand
Methods for Calculating Demand
Trend Projections
Exponential : constant annual percentage increase in traffic
Econometric Forecasting
Market & Industry Surveys
Market Segmentation
Business Traffic
Leisure Traffic
Price & Income Elasticities of Demand
Why do potential markets fail to deliver?
What is required to capture markets ?
Leadership in the market place
What governs airlines’ economics ?
What determines airlines’ cost ?
Cost of technology innovations - net gains over long gestation periods
Why should cost structures be defined?
Cost can be categorized as ...
Direct Operating Cost - Variable Cost
Direct Operating Cost - Fixed Cost
Indirect Operating Cost
Operating cost movement over stage lengths
Economics of aircraft operating cost
Economics of aircraft operating cost (contd...)
Economics of aircraft operating cost (contd...)
Airline control over cost
Measures for lowering cost
Structure of Airline fares
Yield Management
PPT Slide
Key Performance Indicators
ASK per employee
PPT Slide
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Author: Mr. Gilbert George
Manager - Planning,
Jet Airways
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