What costs dominate an airliner’s operation?

By Bjorn Fehrm

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Introduction

September 6, 2018, © Leeham News.: Last month we put the question if rising fuel prices will revitalize new aircraft sales. We now continue the analysis of an airliner's costs by looking at other parts of the cost equation.

Is fuel the dominant operational cost also in the future? What’s the difference in the different costs between a legacy carrier and an LCC? We use our aircraft cost model to gain more insights.

Summary:
  • To compare costs for an airliner's operation we must distinguish between carrier types and geographies
  • While keeping the modelling relatively simple, it will be possible to single out the cost drivers beside fuel and understand their importance

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