Economic characteristics of airlines

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Basics on Airline's economic characteristics.
Cost and Pricing terminologies for analysis

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Economic characteristics of airlines

  1. 1. AFFILIATED WITH
  2. 2. Rank Airline 2013 2012 2011 2010 2009 1 American Airlines 193.7 107.8 107.2 105.2 104.5 2 Delta Air Lines 164.6 164.6 163.8 162.6 161.1 3 United Airlines 139.2 140.4 141.8 145.6 144.3 4 Southwest Airlines 133.2 134.0 127.6 106.2 101.3 5 Ryanair 81.4 79.3 75.8 72.1 66.5 6 China Eastern Airlines 79.1 73.1 68.7 64.9 44.0 7 Lufthansa 76.3 74.7 65.5 58.9 55.6 8 China Southern Airlines 64.5 61.8 58.7 57.7 49.4 9 easyJet 61.3 59.2 55.5 49.7 46.1 10 Air China 51.0 49.7 48.5 46.2 39.8 (By passengers carried in millions)
  3. 3. Revenue per Employee One measure to determine an airline’s labor productivity. It is calculated by dividing an airline’s total revenue by the number of airline employee full-time equivalents.
  4. 4. Seat Density Average seating configuration of an airline’s operating fleet. The measure is derived by dividing total available seat miles flown by the number of aircraft miles flown. Aircraft size is an important determinant of employees needed to service the operation. Economies of scale: an airline's CASM declines with increasing seat density
  5. 5. Stage-Length The average distance flown, measured in statute miles or Km, per aircraft departure. The measure is calculated by dividing total aircraft miles/Km flown by the number of total aircraft departures performed.

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