PPRuNe Forums - View Single Post - Improving Direct Operating Cost (DOC) help please
Old 5th Feb 2013, 18:44
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stallfail
 
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Cost definition

I think I have a much clearer picture now of what I can do depending on the operating environment however I still find the available formulas for DOC calculation quite confusing. I can't find anything simple and straight forward that I we can use to calculate DOC but I guess that's the nature of DOC.
DOC is per definition operating costs which are directly attributable to the aircraft being operated. The rest are IOC(Indirect Operating Cost), DOC+IOC= TOC (Total Operating Cost)
DOC normally consists of four major cost categories ie. crew cost, fuel and oil cost, depreciation cost (including insurance cost) and maintenance cost.

In your case it might be more transparent to apply the LCC(Life Cycle Cost, the total cost incurred by an item along its entire life / life cycle)concept,instead of the standard Cost Benefit Analysis (CBA) methods. the research is focused on aircraft maintenance and engineering, as the main subject !!!

From LCC point of view, all cost categories resulting from aircraft acquisition and exploitation are included in the LCC, only two cost categories are excluded : Ticketing/Sales/Promotion and General Administration cost !!!
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