A question of finance.....
Hi all
First post and I hope it's in the right place....
Another thread referred to the fact that a 747 cost 200m (which I assume is sterling but may be dollars).
In any even how on earth does an airline ever cover the cost? Using an assumption that 350 fare paying passengers pay £500 per journey and there are two journies a day for 300 days of the year then the revenue is £350,000 per day or £105m per year. However that takes no account of any of the other costs which are incurred (including the fact that the more people on board the more fuel is burnt) and does not reflect interest/capital/leasing charges which must also add a substantial overhead. Is there a basic cost per hour (irrespective of whether the plane's flying or not) which the industry uses?
I assume that freight is probably the key here - in which case which is the more profitable revenue earner - freight or humans?
I'm not starting an airline just very interested
Thanks in advance
Bernie