Airline Economics -- Costs

• Aircraft or Flight related

  • Direct Operating Costs (DOC)
  • DOC components
    • Standing Charges
      • Depreciation, Insurance & Interest
    • Maintenance
      • Airframe, Power-plant, & Overheads
    • Crew Costs
      • Cockpit & Cabin
      • Wages, Allowances, Training & Benefits
    • Fuel & Oil costs
    • Airport & ATC costs
      • Landing Charges, Pax. Handling Charges & Navigation charges

• Fleet or Airline related

  • Indirect Operating Costs (IOC)
  • IOC Components
    • Administrative costs & overheads
    • Route Development
    • Advertisement & Marketing
    • Commission to Travel Agents
    • Catering & Passenger service
    • Passenger Terminal Costs
    • Miscellaneous expenses

Two different types of Operating Costs

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