Airline Costs
For Accounting & General Management
- Operating costs
- Direct Operating Costs
- Expenses associated with & dependant on aircraft type
- Indirect Operating Costs
- Expenses unaffected by the aircraft type being operated
- Non-operating costs & Revenues
- Unrelated to operation of Air Transport Services
For Economic Analysis & Management Decision making
- Variable costs
- Costs that change when ASMs change
- Can be avoided if Flights are cancelled
- Avoidable in the short run
- Fixed costs
- Costs that do not change with ASMs
- Not avoidable in the short run