Airline Cost Structures
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The document instructs the reader to review questions at the end of Chapter 10, provides an email for any clarification questions, and asks that any submissions be sent by the following week.
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The Civil Aviation Industry in India has decided to introduce easy entry and exit rules for regional airlines to encourage greater participation. Airlines operating on regional routes will be allowed to cease operations if they deem operations unprofitable after a set period. This is expected to lead to a surge in the number of new airlines with small fleets and aircraft. The goal is to enhance ease of doing business while respecting market forces with minimal government interference.
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The document discusses the different elements of cost for airlines. There are three main categories of costs: 1) Direct operating costs which are related to airplanes and passengers, 2) Indirect operating costs which are not directly related to flight operations but charged to passengers, and 3) Overhead costs which are managerial expenses for sales, marketing, and human resources needed to operate flights smoothly. Understanding these different cost elements is important for both low-cost carriers providing cheap flights and full-service carriers offering luxury travel.
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This document discusses various pricing tactics used by airlines, including fare actions that change actual fare levels and adjustments to fare rules and restrictions. It provides examples of different types of fare actions like introductory fares for new routes, system-wide sales during weak periods, and segment-specific pricing. Examples of adjusting rules include changing advance purchase requirements, minimum/maximum stay durations, and directional pricing. The objective of these tactics is to maximize revenue by selling seats at the highest fares possible while balancing price-sensitive customers.
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The document discusses the history and development of the aviation industry in India. It covers key events from the first commercial flight in 1911 to the industry's growth period in 2007. Challenges faced in recent years are also summarized, including rising costs, a decline in demand, and miscalculations by some airlines. The conclusion suggests that the future remains bright for Indian aviation despite current difficulties, as the sector works to address issues and better manage operations.
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Airlines industry
The Civil Aviation Industry in India has decided to introduce easy entry and exit rules for regional airlines to encourage greater participation. Airlines operating on regional routes will be allowed to cease operations if they deem operations unprofitable after a set period. This is expected to lead to a surge in the number of new airlines with small fleets and aircraft. The goal is to enhance ease of doing business while respecting market forces with minimal government interference.
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The document discusses the different elements of cost for airlines. There are three main categories of costs: 1) Direct operating costs which are related to airplanes and passengers, 2) Indirect operating costs which are not directly related to flight operations but charged to passengers, and 3) Overhead costs which are managerial expenses for sales, marketing, and human resources needed to operate flights smoothly. Understanding these different cost elements is important for both low-cost carriers providing cheap flights and full-service carriers offering luxury travel.
Airfare pricing process & strategies
This document discusses various pricing tactics used by airlines, including fare actions that change actual fare levels and adjustments to fare rules and restrictions. It provides examples of different types of fare actions like introductory fares for new routes, system-wide sales during weak periods, and segment-specific pricing. Examples of adjusting rules include changing advance purchase requirements, minimum/maximum stay durations, and directional pricing. The objective of these tactics is to maximize revenue by selling seats at the highest fares possible while balancing price-sensitive customers.
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This document discusses key metrics used to analyze airline economics, including available seat kilometers (ASK), revenue passenger kilometers (RPK), load factor, yield, and unit cost. It explains how these metrics are calculated and used in the basic airline profit equation of RPM x Yield - ASM x Unit Cost to determine profitability. Examples are provided to illustrate calculating yield from a given flight scenario and how airlines determine ticket prices based on yield management.
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The Indian civil aviation industry is the 9th largest in the world and is growing rapidly. It is expected to require over 1300 new aircraft worth $150 billion in the next 20 years. While passenger traffic has quadrupled over the last decade and is projected to reach 180 million by 2020, most airlines are struggling financially. Factors such as high fuel costs, taxes, and interest rates have led to losses for all major airlines except Indigo in 2010-11. Reforms around foreign investment, tax structure, and regional connectivity are needed to improve the sustainability and growth of the industry.
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This airline offers more than 647 daily flights connecting to 38 destinations.
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The document discusses emerging security threats to the aviation industry. It notes that while new aviation technologies aim to increase protection, they could also be exploited by terrorists to conduct large-scale attacks across multiple airports. Additionally, airports often focus on complying with existing regulations rather than detecting new vulnerabilities. The document also warns that many aviation systems are vulnerable to hacking, putting flight control, navigation, and other critical systems at risk. However, new software solutions for airlines and pilots may provide an additional layer of security if built-in systems fail. Overall, the aviation industry must regularly update protections and prepare for evolving threats.
Organisational structure of Kingfisher airlines
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© 1 BlueHorizon Group 2014 | PROPRIETARY INFORMATION | All Rights Reserved
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Yes, tourist attractions could benefit from applying yield management principles. Here are some examples of how they could implement it:
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- Offer early bird discounts for tickets purchased far in advance but increase prices as the date gets closer.
- Implement different ticket categories like general admission vs VIP tours with amenities to segment customers by willingness to pay.
- Use dynamic pricing that adjusts ticket prices in real-time based on current and forecasted demand levels. Prices would rise on busy dates and fall when demand is low.
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This document discusses aviation security and the importance of protecting the aviation industry from criminal and terrorist threats. It notes that aviation is a target due to its role in worldwide economic stability and transportation. The document outlines some of the challenges in securing the complex aviation system and infrastructure. It also examines the economic impact of the 9/11 terrorist attacks on aviation and stresses the need for proactive security strategies to prevent further deterioration of the economy or stability from terrorist activities.
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AirAsia is a low-cost airline based in Malaysia that primarily serves destinations in Asia. It was formed in 2001 when the Malaysian government took over and restructured the airline. AirAsia has since expanded to many countries in Asia and operates over 150 flights per week from 9 destinations in India. The airline focuses on keeping costs low through efficient operations, purchasing practices, and unbundled services to offer low base fares. It aims to be Asia's first low-cost carrier and has pursued a strategy of operating from secondary airports to reduce fees and encouraging light baggage to reduce fuel costs.
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The document is a presentation on the aviation industry that covers several topics:
- It introduces the presenter and acknowledges their faculty.
- It discusses factors affecting the development of the aviation industry such as costs, government policies, and competition.
- It provides details on the growth of low-cost carriers in India and compares fares between low-cost and full-service airlines.
- It examines the increase in domestic airlines in India and how the aviation industry impacts the overall economy.
Mapping the success of indigo airlines.
IndiGo is India's largest airline by market share. A recent study found that IndiGo's profit for the first quarter of the current fiscal year was Rs. 106 crore. IndiGo operates 359 daily flights across 27 domestic and 5 international destinations using a fleet of 58 Airbus A320 aircraft. The airline has experienced strong revenue growth and profits in recent years.
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IndiGo is India's largest airline by market share, founded in 2006 by Rahul Bhatia and Rakesh Gangwal. It operates as a low-cost carrier with over 100 Airbus aircraft serving 41 destinations. IndiGo utilizes various cost-saving strategies like bulk purchases of a single aircraft type, sale-and-leaseback financing, and efficient turnaround times. These strategies have allowed IndiGo to become the most profitable airline in India and the second largest low-cost carrier in Asia.
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This document discusses route profitability systems and challenges in airline cost accounting. It outlines a cost hierarchy including direct, indirect, fixed and variable costs. It also discusses system dependencies and different models for route profitability analysis from traditional to advanced. The advanced model allows for multi-level profit analysis for strategic, operational and managerial decisions. It emphasizes the need for a system that reconciles to financial reports in real-time and supports activity-based costing and planning/budgeting.
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Syllabus
Chapter-1
Introduction to objective, scope and outcome the subject
Chapter 2
Introduction: Scope and Specialization of Civil Engineering, Role of civil Engineer in Society, Impact of infrastructural development on economy of country.
Chapter 3
Surveying: Object Principles & Types of Surveying; Site Plans, Plans & Maps; Scales & Unit of different Measurements.
Linear Measurements: Instruments used. Linear Measurement by Tape, Ranging out Survey Lines and overcoming Obstructions; Measurements on sloping ground; Tape corrections, conventional symbols. Angular Measurements: Instruments used; Introduction to Compass Surveying, Bearings and Longitude & Latitude of a Line, Introduction to total station.
Levelling: Instrument used Object of levelling, Methods of levelling in brief, and Contour maps.
Chapter 4
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Chapter 5
Transportation: Introduction to Transportation Engineering; Traffic and Road Safety: Types and Characteristics of Various Modes of Transportation; Various Road Traffic Signs, Causes of Accidents and Road Safety Measures.
Chapter 6
Environmental Engineering: Environmental Pollution, Environmental Acts and Regulations, Functional Concepts of Ecology, Basics of Species, Biodiversity, Ecosystem, Hydrological Cycle; Chemical Cycles: Carbon, Nitrogen & Phosphorus; Energy Flow in Ecosystems.
Water Pollution: Water Quality standards, Introduction to Treatment & Disposal of Waste Water. Reuse and Saving of Water, Rain Water Harvesting. Solid Waste Management: Classification of Solid Waste, Collection, Transportation and Disposal of Solid. Recycling of Solid Waste: Energy Recovery, Sanitary Landfill, On-Site Sanitation. Air & Noise Pollution: Primary and Secondary air pollutants, Harmful effects of Air Pollution, Control of Air Pollution. . Noise Pollution Harmful Effects of noise pollution, control of noise pollution, Global warming & Climate Change, Ozone depletion, Greenhouse effect
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1. Palancharmy, Basic Civil Engineering, McGraw Hill publishers.
2. Satheesh Gopi, Basic Civil Engineering, Pearson Publishers.
3. Ketki Rangwala Dalal, Essentials of Civil Engineering, Charotar Publishing House.
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Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
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