PPRuNe Forums - View Single Post - How Airlines Spend Your Airfare
View Single Post
Old 27th Aug 2012, 12:51
  #13 (permalink)  
Tableview
 
Join Date: Feb 2012
Location: Cape Town / UK / Europe
Posts: 728
Likes: 0
Received 0 Likes on 0 Posts
If you are in possession of the key metrics, break-even load factor BELF) is easy to compute. It is simply Unit Cost (expenses divided by capacity, measured in Available Tonne-km)
That really only starts to address the mathematics. The challenge lies in calculating the expenses in terms of what factors, such as leasing costs, depreciation, interest on loans, infrastructure, etc, you allocate to expenses, and over what period.

Last edited by Tableview; 27th Aug 2012 at 12:53.
Tableview is offline