Airline Economics (crew costs)
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Join Date: Jun 2006
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Airline Economics (crew costs)
Hello all,
I'm doing some research evaluating the operating costs of a long-haul airline (no, I'm not thinking of starting one! ) and I'm finding it difficult to quantify crew costs - I'd really appreciate some help.
What is the per hour total cost to an airline of a long/ultra long haul flight crew member and cabin crew member? (for long/ultra long read: A340-500 or 777-200LR 14+ hours). Would there be a lot of difference in crew costs if an LCC attempted to run such a route?
Also, how many flight crew do SIA take on their ultra-long A340-500 Singapore-Newark flights? (approx 19 hours)
Thanks in advance for anyone's help,
Cheers,
I'm doing some research evaluating the operating costs of a long-haul airline (no, I'm not thinking of starting one! ) and I'm finding it difficult to quantify crew costs - I'd really appreciate some help.
What is the per hour total cost to an airline of a long/ultra long haul flight crew member and cabin crew member? (for long/ultra long read: A340-500 or 777-200LR 14+ hours). Would there be a lot of difference in crew costs if an LCC attempted to run such a route?
Also, how many flight crew do SIA take on their ultra-long A340-500 Singapore-Newark flights? (approx 19 hours)
Thanks in advance for anyone's help,
Cheers,
Join Date: Aug 2005
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At a typical blue chip carrier, experienced pilots routinely will get 150-200(US)/hour depending on type and years with company. FOs between 1/3 to 3/4 of this pay. FAs (G-d bless 'em) will take home a bit less.
After initial capital investments (aircraft and spares) - fuel and maintenance cost eats into the bottom line like a ravenous hound. Then there's insurance, franchise/airport fees, building leases and taxes, always taxes.
Some of the biggest money-suckers are the numerous VPs of this and that with incomes rivaling the entire flight crew and engineers combined - contributing far less than our intrepid hands-on people to the airline's bottom line.
After initial capital investments (aircraft and spares) - fuel and maintenance cost eats into the bottom line like a ravenous hound. Then there's insurance, franchise/airport fees, building leases and taxes, always taxes.
Some of the biggest money-suckers are the numerous VPs of this and that with incomes rivaling the entire flight crew and engineers combined - contributing far less than our intrepid hands-on people to the airline's bottom line.
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Would there be a lot of difference in crew costs if an LCC attempted to run such a route?
I thought the premise of a LCC was to have a very lean operation in order to sell cheap tickets? Would anybody want to fly on a LCC flight for more than 3-4 hours and not get any food, drinks or an entertainment system? I remember reading a business case study once that said that effective LCCs are limited to 3-4 hour flights as this would be the most a passenger was willing to sit in a tin can without any of the bells and whistles that a legecy carrier would normally provide.
From what I see, for long haul flights, crew costs are only an element in the cost structure of an airline. If the airline had food and drinks and entertainment systems, then you would have to consider catering costs, maintenence of systems and the sort.
Say you are able to keep the costs of tickets down without all the trappings, would you, as a reasonable person, want to sit on a plane of 17-19 hours without food, drinks or entertainment?
It would be an interesting case study if it did happen.