Cost Index Formula
 

I understand that the cost index is based on:

Cost Index = Cost of Time/Cost of Fuel.

$/Hour X 1
$/Lb of Fuel 100



How is the cost of time figured out?

time related costs -airplane operated costs affected by flight time:
-flight crew
-cabin crew
-leasing
-maintenance (time related) -airframe material /labor
-engine material /labor
-other costs
The time related costs may be dificult to calculate.
The fuel costs are expressed in units of currency per quantity of fuel :cents/pound

Have a look for the Airbus "Getting to grips with cost index", it will reveal all.

J_T's wonderful list of websites at the top of this forum should help you find it.

Mutt

Shon7
 

Unless you are management attempting to derive the CI, it is academic.

As a Pilot, all you do is set the CI and operate the aircraft as per your SOPs.