airline economics
TRANSCRIPT
AIRLINE ECONOMICS
Cahit Kutay Uysal
AVM 101
OUTLINE The Basic Measures Available Seat Kilometer (ASK)
Revenue Passenger Kilometer (RPK)
Load Factor (LF)
Yield
Unit Cost
Revenue
Basic Airline Profit Equation
Examples
Conclusion
Bibliography
THE BASIC MEASURES
Available Seat Kilometer (ASK)
Revenue Passenger Kilometer (RPK)
Load Factor (LF)
Yield
Unit Cost
AVAILABLE SEAT KILOMETER
(ASK) The most common measure of airline
output is an available seat kilometer
If we have an aircraft with 500 seats
and flown at a distance of 10000 km
than we will have 5000000 seats
kilometer
TRAFFİC ndash REVENUE
PASSENGER KILOMETER
(RPK) Althought the airline produced seats
not all will be sold The sale of the
products will measured by RPK
So in the earlier example if only 400
out of the 500 seats were sold than
the RPK will be 4000000
MEASURE OF SALE RATE ndash
LOAD FACTOR
Is the rate of passenger to aircraft capacity
In the earlier example we have an aircraft with 500 seats but we sold only 400 seats So our load factor is 80
LF = Revenue Passenger Kilometer Available Seat Kilometer
It changes for all airlines However an airline had many types of aircrafts and different sectors like business and economy class
MEASURE OF UNIT REVENUE
- YIELD Avarage fare paid by all passengers
per kilometer
Yield measures average earnings
made by an airline by transporting
passengers per kilometer
Yield = Established Total Revenue
Available Seat Kilometer
UNIT COST (COST PER
ASK) This is the cost of the seat
Unit cost calculated same formula with
yield
Unit Cost = Total Revenue Available
Seat Kilometer
If the unit cost lower than yield
airlines will make a profit
REVENUE
What is the revenue
Ticket fares including fuel surcharge
In-flight sales
Extra or oversized baggage
Freight not linked to passanger
What is the not revenue
Taxes fees or other charges
BASIC AIRLINE PROFIT
EQUATION
RPM x Yield ndash ASM x Unit Cost
(Revenue) ndash (Operating Expenses)
EXAMPLES
We have a route
Aircraft First Class Economy
Class
10 Seats 110 Seats
600 TL 350 TL
A B
1000 Km
What is the yield
Yield Total Revenue RPK
Revenue (10600) + (110350) =
45700
Passenger 10 + 110 = 120
Distance 1000 Km
RPK 120 1000 = 120000
Yield Total Revenue RPK
= 45700 120000 = Nearly 038
The airline earned nearly 038 kuruş per
passenger per kilometer
Istanbul to Antalya 475 Km 100
TL
Istanbul to Bodrum 430 Km 150
TL
This price differencersquos reason
Same airline same fuel consupmtion
same crew salary
- Robert Crandallrsquos Yield Management
System
CONCLUSION
The basic measures for the calculate
profitloss for airline
Available Seat Kilometer
Revenue Passenger Kilometer
Load Factor
Yield
Unit Cost
How airlines detect their ticket prices
BIBLIOGRAPHY
httpenwikipediaorgwikiAirlineEconomic_considerations
httpcatsrvsegmueduSYST660Chap3_Airline_Economics[2]pdf
httpwwwhavayolu101com20100831ucak-biletinin-fiyati-nasil-belirleniyorcontent-anchor
httpwwwslidesharenetpgarodiarevenue-passenger-kilometerrelated=1
httpocwmiteducoursesaeronautics-and-astronautics16-75j-airline-management-spring-2006lecture-noteslect2pdf
OUTLINE The Basic Measures Available Seat Kilometer (ASK)
Revenue Passenger Kilometer (RPK)
Load Factor (LF)
Yield
Unit Cost
Revenue
Basic Airline Profit Equation
Examples
Conclusion
Bibliography
THE BASIC MEASURES
Available Seat Kilometer (ASK)
Revenue Passenger Kilometer (RPK)
Load Factor (LF)
Yield
Unit Cost
AVAILABLE SEAT KILOMETER
(ASK) The most common measure of airline
output is an available seat kilometer
If we have an aircraft with 500 seats
and flown at a distance of 10000 km
than we will have 5000000 seats
kilometer
TRAFFİC ndash REVENUE
PASSENGER KILOMETER
(RPK) Althought the airline produced seats
not all will be sold The sale of the
products will measured by RPK
So in the earlier example if only 400
out of the 500 seats were sold than
the RPK will be 4000000
MEASURE OF SALE RATE ndash
LOAD FACTOR
Is the rate of passenger to aircraft capacity
In the earlier example we have an aircraft with 500 seats but we sold only 400 seats So our load factor is 80
LF = Revenue Passenger Kilometer Available Seat Kilometer
It changes for all airlines However an airline had many types of aircrafts and different sectors like business and economy class
MEASURE OF UNIT REVENUE
- YIELD Avarage fare paid by all passengers
per kilometer
Yield measures average earnings
made by an airline by transporting
passengers per kilometer
Yield = Established Total Revenue
Available Seat Kilometer
UNIT COST (COST PER
ASK) This is the cost of the seat
Unit cost calculated same formula with
yield
Unit Cost = Total Revenue Available
Seat Kilometer
If the unit cost lower than yield
airlines will make a profit
REVENUE
What is the revenue
Ticket fares including fuel surcharge
In-flight sales
Extra or oversized baggage
Freight not linked to passanger
What is the not revenue
Taxes fees or other charges
BASIC AIRLINE PROFIT
EQUATION
RPM x Yield ndash ASM x Unit Cost
(Revenue) ndash (Operating Expenses)
EXAMPLES
We have a route
Aircraft First Class Economy
Class
10 Seats 110 Seats
600 TL 350 TL
A B
1000 Km
What is the yield
Yield Total Revenue RPK
Revenue (10600) + (110350) =
45700
Passenger 10 + 110 = 120
Distance 1000 Km
RPK 120 1000 = 120000
Yield Total Revenue RPK
= 45700 120000 = Nearly 038
The airline earned nearly 038 kuruş per
passenger per kilometer
Istanbul to Antalya 475 Km 100
TL
Istanbul to Bodrum 430 Km 150
TL
This price differencersquos reason
Same airline same fuel consupmtion
same crew salary
- Robert Crandallrsquos Yield Management
System
CONCLUSION
The basic measures for the calculate
profitloss for airline
Available Seat Kilometer
Revenue Passenger Kilometer
Load Factor
Yield
Unit Cost
How airlines detect their ticket prices
BIBLIOGRAPHY
httpenwikipediaorgwikiAirlineEconomic_considerations
httpcatsrvsegmueduSYST660Chap3_Airline_Economics[2]pdf
httpwwwhavayolu101com20100831ucak-biletinin-fiyati-nasil-belirleniyorcontent-anchor
httpwwwslidesharenetpgarodiarevenue-passenger-kilometerrelated=1
httpocwmiteducoursesaeronautics-and-astronautics16-75j-airline-management-spring-2006lecture-noteslect2pdf
THE BASIC MEASURES
Available Seat Kilometer (ASK)
Revenue Passenger Kilometer (RPK)
Load Factor (LF)
Yield
Unit Cost
AVAILABLE SEAT KILOMETER
(ASK) The most common measure of airline
output is an available seat kilometer
If we have an aircraft with 500 seats
and flown at a distance of 10000 km
than we will have 5000000 seats
kilometer
TRAFFİC ndash REVENUE
PASSENGER KILOMETER
(RPK) Althought the airline produced seats
not all will be sold The sale of the
products will measured by RPK
So in the earlier example if only 400
out of the 500 seats were sold than
the RPK will be 4000000
MEASURE OF SALE RATE ndash
LOAD FACTOR
Is the rate of passenger to aircraft capacity
In the earlier example we have an aircraft with 500 seats but we sold only 400 seats So our load factor is 80
LF = Revenue Passenger Kilometer Available Seat Kilometer
It changes for all airlines However an airline had many types of aircrafts and different sectors like business and economy class
MEASURE OF UNIT REVENUE
- YIELD Avarage fare paid by all passengers
per kilometer
Yield measures average earnings
made by an airline by transporting
passengers per kilometer
Yield = Established Total Revenue
Available Seat Kilometer
UNIT COST (COST PER
ASK) This is the cost of the seat
Unit cost calculated same formula with
yield
Unit Cost = Total Revenue Available
Seat Kilometer
If the unit cost lower than yield
airlines will make a profit
REVENUE
What is the revenue
Ticket fares including fuel surcharge
In-flight sales
Extra or oversized baggage
Freight not linked to passanger
What is the not revenue
Taxes fees or other charges
BASIC AIRLINE PROFIT
EQUATION
RPM x Yield ndash ASM x Unit Cost
(Revenue) ndash (Operating Expenses)
EXAMPLES
We have a route
Aircraft First Class Economy
Class
10 Seats 110 Seats
600 TL 350 TL
A B
1000 Km
What is the yield
Yield Total Revenue RPK
Revenue (10600) + (110350) =
45700
Passenger 10 + 110 = 120
Distance 1000 Km
RPK 120 1000 = 120000
Yield Total Revenue RPK
= 45700 120000 = Nearly 038
The airline earned nearly 038 kuruş per
passenger per kilometer
Istanbul to Antalya 475 Km 100
TL
Istanbul to Bodrum 430 Km 150
TL
This price differencersquos reason
Same airline same fuel consupmtion
same crew salary
- Robert Crandallrsquos Yield Management
System
CONCLUSION
The basic measures for the calculate
profitloss for airline
Available Seat Kilometer
Revenue Passenger Kilometer
Load Factor
Yield
Unit Cost
How airlines detect their ticket prices
BIBLIOGRAPHY
httpenwikipediaorgwikiAirlineEconomic_considerations
httpcatsrvsegmueduSYST660Chap3_Airline_Economics[2]pdf
httpwwwhavayolu101com20100831ucak-biletinin-fiyati-nasil-belirleniyorcontent-anchor
httpwwwslidesharenetpgarodiarevenue-passenger-kilometerrelated=1
httpocwmiteducoursesaeronautics-and-astronautics16-75j-airline-management-spring-2006lecture-noteslect2pdf
AVAILABLE SEAT KILOMETER
(ASK) The most common measure of airline
output is an available seat kilometer
If we have an aircraft with 500 seats
and flown at a distance of 10000 km
than we will have 5000000 seats
kilometer
TRAFFİC ndash REVENUE
PASSENGER KILOMETER
(RPK) Althought the airline produced seats
not all will be sold The sale of the
products will measured by RPK
So in the earlier example if only 400
out of the 500 seats were sold than
the RPK will be 4000000
MEASURE OF SALE RATE ndash
LOAD FACTOR
Is the rate of passenger to aircraft capacity
In the earlier example we have an aircraft with 500 seats but we sold only 400 seats So our load factor is 80
LF = Revenue Passenger Kilometer Available Seat Kilometer
It changes for all airlines However an airline had many types of aircrafts and different sectors like business and economy class
MEASURE OF UNIT REVENUE
- YIELD Avarage fare paid by all passengers
per kilometer
Yield measures average earnings
made by an airline by transporting
passengers per kilometer
Yield = Established Total Revenue
Available Seat Kilometer
UNIT COST (COST PER
ASK) This is the cost of the seat
Unit cost calculated same formula with
yield
Unit Cost = Total Revenue Available
Seat Kilometer
If the unit cost lower than yield
airlines will make a profit
REVENUE
What is the revenue
Ticket fares including fuel surcharge
In-flight sales
Extra or oversized baggage
Freight not linked to passanger
What is the not revenue
Taxes fees or other charges
BASIC AIRLINE PROFIT
EQUATION
RPM x Yield ndash ASM x Unit Cost
(Revenue) ndash (Operating Expenses)
EXAMPLES
We have a route
Aircraft First Class Economy
Class
10 Seats 110 Seats
600 TL 350 TL
A B
1000 Km
What is the yield
Yield Total Revenue RPK
Revenue (10600) + (110350) =
45700
Passenger 10 + 110 = 120
Distance 1000 Km
RPK 120 1000 = 120000
Yield Total Revenue RPK
= 45700 120000 = Nearly 038
The airline earned nearly 038 kuruş per
passenger per kilometer
Istanbul to Antalya 475 Km 100
TL
Istanbul to Bodrum 430 Km 150
TL
This price differencersquos reason
Same airline same fuel consupmtion
same crew salary
- Robert Crandallrsquos Yield Management
System
CONCLUSION
The basic measures for the calculate
profitloss for airline
Available Seat Kilometer
Revenue Passenger Kilometer
Load Factor
Yield
Unit Cost
How airlines detect their ticket prices
BIBLIOGRAPHY
httpenwikipediaorgwikiAirlineEconomic_considerations
httpcatsrvsegmueduSYST660Chap3_Airline_Economics[2]pdf
httpwwwhavayolu101com20100831ucak-biletinin-fiyati-nasil-belirleniyorcontent-anchor
httpwwwslidesharenetpgarodiarevenue-passenger-kilometerrelated=1
httpocwmiteducoursesaeronautics-and-astronautics16-75j-airline-management-spring-2006lecture-noteslect2pdf
TRAFFİC ndash REVENUE
PASSENGER KILOMETER
(RPK) Althought the airline produced seats
not all will be sold The sale of the
products will measured by RPK
So in the earlier example if only 400
out of the 500 seats were sold than
the RPK will be 4000000
MEASURE OF SALE RATE ndash
LOAD FACTOR
Is the rate of passenger to aircraft capacity
In the earlier example we have an aircraft with 500 seats but we sold only 400 seats So our load factor is 80
LF = Revenue Passenger Kilometer Available Seat Kilometer
It changes for all airlines However an airline had many types of aircrafts and different sectors like business and economy class
MEASURE OF UNIT REVENUE
- YIELD Avarage fare paid by all passengers
per kilometer
Yield measures average earnings
made by an airline by transporting
passengers per kilometer
Yield = Established Total Revenue
Available Seat Kilometer
UNIT COST (COST PER
ASK) This is the cost of the seat
Unit cost calculated same formula with
yield
Unit Cost = Total Revenue Available
Seat Kilometer
If the unit cost lower than yield
airlines will make a profit
REVENUE
What is the revenue
Ticket fares including fuel surcharge
In-flight sales
Extra or oversized baggage
Freight not linked to passanger
What is the not revenue
Taxes fees or other charges
BASIC AIRLINE PROFIT
EQUATION
RPM x Yield ndash ASM x Unit Cost
(Revenue) ndash (Operating Expenses)
EXAMPLES
We have a route
Aircraft First Class Economy
Class
10 Seats 110 Seats
600 TL 350 TL
A B
1000 Km
What is the yield
Yield Total Revenue RPK
Revenue (10600) + (110350) =
45700
Passenger 10 + 110 = 120
Distance 1000 Km
RPK 120 1000 = 120000
Yield Total Revenue RPK
= 45700 120000 = Nearly 038
The airline earned nearly 038 kuruş per
passenger per kilometer
Istanbul to Antalya 475 Km 100
TL
Istanbul to Bodrum 430 Km 150
TL
This price differencersquos reason
Same airline same fuel consupmtion
same crew salary
- Robert Crandallrsquos Yield Management
System
CONCLUSION
The basic measures for the calculate
profitloss for airline
Available Seat Kilometer
Revenue Passenger Kilometer
Load Factor
Yield
Unit Cost
How airlines detect their ticket prices
BIBLIOGRAPHY
httpenwikipediaorgwikiAirlineEconomic_considerations
httpcatsrvsegmueduSYST660Chap3_Airline_Economics[2]pdf
httpwwwhavayolu101com20100831ucak-biletinin-fiyati-nasil-belirleniyorcontent-anchor
httpwwwslidesharenetpgarodiarevenue-passenger-kilometerrelated=1
httpocwmiteducoursesaeronautics-and-astronautics16-75j-airline-management-spring-2006lecture-noteslect2pdf
MEASURE OF SALE RATE ndash
LOAD FACTOR
Is the rate of passenger to aircraft capacity
In the earlier example we have an aircraft with 500 seats but we sold only 400 seats So our load factor is 80
LF = Revenue Passenger Kilometer Available Seat Kilometer
It changes for all airlines However an airline had many types of aircrafts and different sectors like business and economy class
MEASURE OF UNIT REVENUE
- YIELD Avarage fare paid by all passengers
per kilometer
Yield measures average earnings
made by an airline by transporting
passengers per kilometer
Yield = Established Total Revenue
Available Seat Kilometer
UNIT COST (COST PER
ASK) This is the cost of the seat
Unit cost calculated same formula with
yield
Unit Cost = Total Revenue Available
Seat Kilometer
If the unit cost lower than yield
airlines will make a profit
REVENUE
What is the revenue
Ticket fares including fuel surcharge
In-flight sales
Extra or oversized baggage
Freight not linked to passanger
What is the not revenue
Taxes fees or other charges
BASIC AIRLINE PROFIT
EQUATION
RPM x Yield ndash ASM x Unit Cost
(Revenue) ndash (Operating Expenses)
EXAMPLES
We have a route
Aircraft First Class Economy
Class
10 Seats 110 Seats
600 TL 350 TL
A B
1000 Km
What is the yield
Yield Total Revenue RPK
Revenue (10600) + (110350) =
45700
Passenger 10 + 110 = 120
Distance 1000 Km
RPK 120 1000 = 120000
Yield Total Revenue RPK
= 45700 120000 = Nearly 038
The airline earned nearly 038 kuruş per
passenger per kilometer
Istanbul to Antalya 475 Km 100
TL
Istanbul to Bodrum 430 Km 150
TL
This price differencersquos reason
Same airline same fuel consupmtion
same crew salary
- Robert Crandallrsquos Yield Management
System
CONCLUSION
The basic measures for the calculate
profitloss for airline
Available Seat Kilometer
Revenue Passenger Kilometer
Load Factor
Yield
Unit Cost
How airlines detect their ticket prices
BIBLIOGRAPHY
httpenwikipediaorgwikiAirlineEconomic_considerations
httpcatsrvsegmueduSYST660Chap3_Airline_Economics[2]pdf
httpwwwhavayolu101com20100831ucak-biletinin-fiyati-nasil-belirleniyorcontent-anchor
httpwwwslidesharenetpgarodiarevenue-passenger-kilometerrelated=1
httpocwmiteducoursesaeronautics-and-astronautics16-75j-airline-management-spring-2006lecture-noteslect2pdf
MEASURE OF UNIT REVENUE
- YIELD Avarage fare paid by all passengers
per kilometer
Yield measures average earnings
made by an airline by transporting
passengers per kilometer
Yield = Established Total Revenue
Available Seat Kilometer
UNIT COST (COST PER
ASK) This is the cost of the seat
Unit cost calculated same formula with
yield
Unit Cost = Total Revenue Available
Seat Kilometer
If the unit cost lower than yield
airlines will make a profit
REVENUE
What is the revenue
Ticket fares including fuel surcharge
In-flight sales
Extra or oversized baggage
Freight not linked to passanger
What is the not revenue
Taxes fees or other charges
BASIC AIRLINE PROFIT
EQUATION
RPM x Yield ndash ASM x Unit Cost
(Revenue) ndash (Operating Expenses)
EXAMPLES
We have a route
Aircraft First Class Economy
Class
10 Seats 110 Seats
600 TL 350 TL
A B
1000 Km
What is the yield
Yield Total Revenue RPK
Revenue (10600) + (110350) =
45700
Passenger 10 + 110 = 120
Distance 1000 Km
RPK 120 1000 = 120000
Yield Total Revenue RPK
= 45700 120000 = Nearly 038
The airline earned nearly 038 kuruş per
passenger per kilometer
Istanbul to Antalya 475 Km 100
TL
Istanbul to Bodrum 430 Km 150
TL
This price differencersquos reason
Same airline same fuel consupmtion
same crew salary
- Robert Crandallrsquos Yield Management
System
CONCLUSION
The basic measures for the calculate
profitloss for airline
Available Seat Kilometer
Revenue Passenger Kilometer
Load Factor
Yield
Unit Cost
How airlines detect their ticket prices
BIBLIOGRAPHY
httpenwikipediaorgwikiAirlineEconomic_considerations
httpcatsrvsegmueduSYST660Chap3_Airline_Economics[2]pdf
httpwwwhavayolu101com20100831ucak-biletinin-fiyati-nasil-belirleniyorcontent-anchor
httpwwwslidesharenetpgarodiarevenue-passenger-kilometerrelated=1
httpocwmiteducoursesaeronautics-and-astronautics16-75j-airline-management-spring-2006lecture-noteslect2pdf
UNIT COST (COST PER
ASK) This is the cost of the seat
Unit cost calculated same formula with
yield
Unit Cost = Total Revenue Available
Seat Kilometer
If the unit cost lower than yield
airlines will make a profit
REVENUE
What is the revenue
Ticket fares including fuel surcharge
In-flight sales
Extra or oversized baggage
Freight not linked to passanger
What is the not revenue
Taxes fees or other charges
BASIC AIRLINE PROFIT
EQUATION
RPM x Yield ndash ASM x Unit Cost
(Revenue) ndash (Operating Expenses)
EXAMPLES
We have a route
Aircraft First Class Economy
Class
10 Seats 110 Seats
600 TL 350 TL
A B
1000 Km
What is the yield
Yield Total Revenue RPK
Revenue (10600) + (110350) =
45700
Passenger 10 + 110 = 120
Distance 1000 Km
RPK 120 1000 = 120000
Yield Total Revenue RPK
= 45700 120000 = Nearly 038
The airline earned nearly 038 kuruş per
passenger per kilometer
Istanbul to Antalya 475 Km 100
TL
Istanbul to Bodrum 430 Km 150
TL
This price differencersquos reason
Same airline same fuel consupmtion
same crew salary
- Robert Crandallrsquos Yield Management
System
CONCLUSION
The basic measures for the calculate
profitloss for airline
Available Seat Kilometer
Revenue Passenger Kilometer
Load Factor
Yield
Unit Cost
How airlines detect their ticket prices
BIBLIOGRAPHY
httpenwikipediaorgwikiAirlineEconomic_considerations
httpcatsrvsegmueduSYST660Chap3_Airline_Economics[2]pdf
httpwwwhavayolu101com20100831ucak-biletinin-fiyati-nasil-belirleniyorcontent-anchor
httpwwwslidesharenetpgarodiarevenue-passenger-kilometerrelated=1
httpocwmiteducoursesaeronautics-and-astronautics16-75j-airline-management-spring-2006lecture-noteslect2pdf
REVENUE
What is the revenue
Ticket fares including fuel surcharge
In-flight sales
Extra or oversized baggage
Freight not linked to passanger
What is the not revenue
Taxes fees or other charges
BASIC AIRLINE PROFIT
EQUATION
RPM x Yield ndash ASM x Unit Cost
(Revenue) ndash (Operating Expenses)
EXAMPLES
We have a route
Aircraft First Class Economy
Class
10 Seats 110 Seats
600 TL 350 TL
A B
1000 Km
What is the yield
Yield Total Revenue RPK
Revenue (10600) + (110350) =
45700
Passenger 10 + 110 = 120
Distance 1000 Km
RPK 120 1000 = 120000
Yield Total Revenue RPK
= 45700 120000 = Nearly 038
The airline earned nearly 038 kuruş per
passenger per kilometer
Istanbul to Antalya 475 Km 100
TL
Istanbul to Bodrum 430 Km 150
TL
This price differencersquos reason
Same airline same fuel consupmtion
same crew salary
- Robert Crandallrsquos Yield Management
System
CONCLUSION
The basic measures for the calculate
profitloss for airline
Available Seat Kilometer
Revenue Passenger Kilometer
Load Factor
Yield
Unit Cost
How airlines detect their ticket prices
BIBLIOGRAPHY
httpenwikipediaorgwikiAirlineEconomic_considerations
httpcatsrvsegmueduSYST660Chap3_Airline_Economics[2]pdf
httpwwwhavayolu101com20100831ucak-biletinin-fiyati-nasil-belirleniyorcontent-anchor
httpwwwslidesharenetpgarodiarevenue-passenger-kilometerrelated=1
httpocwmiteducoursesaeronautics-and-astronautics16-75j-airline-management-spring-2006lecture-noteslect2pdf
BASIC AIRLINE PROFIT
EQUATION
RPM x Yield ndash ASM x Unit Cost
(Revenue) ndash (Operating Expenses)
EXAMPLES
We have a route
Aircraft First Class Economy
Class
10 Seats 110 Seats
600 TL 350 TL
A B
1000 Km
What is the yield
Yield Total Revenue RPK
Revenue (10600) + (110350) =
45700
Passenger 10 + 110 = 120
Distance 1000 Km
RPK 120 1000 = 120000
Yield Total Revenue RPK
= 45700 120000 = Nearly 038
The airline earned nearly 038 kuruş per
passenger per kilometer
Istanbul to Antalya 475 Km 100
TL
Istanbul to Bodrum 430 Km 150
TL
This price differencersquos reason
Same airline same fuel consupmtion
same crew salary
- Robert Crandallrsquos Yield Management
System
CONCLUSION
The basic measures for the calculate
profitloss for airline
Available Seat Kilometer
Revenue Passenger Kilometer
Load Factor
Yield
Unit Cost
How airlines detect their ticket prices
BIBLIOGRAPHY
httpenwikipediaorgwikiAirlineEconomic_considerations
httpcatsrvsegmueduSYST660Chap3_Airline_Economics[2]pdf
httpwwwhavayolu101com20100831ucak-biletinin-fiyati-nasil-belirleniyorcontent-anchor
httpwwwslidesharenetpgarodiarevenue-passenger-kilometerrelated=1
httpocwmiteducoursesaeronautics-and-astronautics16-75j-airline-management-spring-2006lecture-noteslect2pdf
EXAMPLES
We have a route
Aircraft First Class Economy
Class
10 Seats 110 Seats
600 TL 350 TL
A B
1000 Km
What is the yield
Yield Total Revenue RPK
Revenue (10600) + (110350) =
45700
Passenger 10 + 110 = 120
Distance 1000 Km
RPK 120 1000 = 120000
Yield Total Revenue RPK
= 45700 120000 = Nearly 038
The airline earned nearly 038 kuruş per
passenger per kilometer
Istanbul to Antalya 475 Km 100
TL
Istanbul to Bodrum 430 Km 150
TL
This price differencersquos reason
Same airline same fuel consupmtion
same crew salary
- Robert Crandallrsquos Yield Management
System
CONCLUSION
The basic measures for the calculate
profitloss for airline
Available Seat Kilometer
Revenue Passenger Kilometer
Load Factor
Yield
Unit Cost
How airlines detect their ticket prices
BIBLIOGRAPHY
httpenwikipediaorgwikiAirlineEconomic_considerations
httpcatsrvsegmueduSYST660Chap3_Airline_Economics[2]pdf
httpwwwhavayolu101com20100831ucak-biletinin-fiyati-nasil-belirleniyorcontent-anchor
httpwwwslidesharenetpgarodiarevenue-passenger-kilometerrelated=1
httpocwmiteducoursesaeronautics-and-astronautics16-75j-airline-management-spring-2006lecture-noteslect2pdf
Yield Total Revenue RPK
Revenue (10600) + (110350) =
45700
Passenger 10 + 110 = 120
Distance 1000 Km
RPK 120 1000 = 120000
Yield Total Revenue RPK
= 45700 120000 = Nearly 038
The airline earned nearly 038 kuruş per
passenger per kilometer
Istanbul to Antalya 475 Km 100
TL
Istanbul to Bodrum 430 Km 150
TL
This price differencersquos reason
Same airline same fuel consupmtion
same crew salary
- Robert Crandallrsquos Yield Management
System
CONCLUSION
The basic measures for the calculate
profitloss for airline
Available Seat Kilometer
Revenue Passenger Kilometer
Load Factor
Yield
Unit Cost
How airlines detect their ticket prices
BIBLIOGRAPHY
httpenwikipediaorgwikiAirlineEconomic_considerations
httpcatsrvsegmueduSYST660Chap3_Airline_Economics[2]pdf
httpwwwhavayolu101com20100831ucak-biletinin-fiyati-nasil-belirleniyorcontent-anchor
httpwwwslidesharenetpgarodiarevenue-passenger-kilometerrelated=1
httpocwmiteducoursesaeronautics-and-astronautics16-75j-airline-management-spring-2006lecture-noteslect2pdf
Istanbul to Antalya 475 Km 100
TL
Istanbul to Bodrum 430 Km 150
TL
This price differencersquos reason
Same airline same fuel consupmtion
same crew salary
- Robert Crandallrsquos Yield Management
System
CONCLUSION
The basic measures for the calculate
profitloss for airline
Available Seat Kilometer
Revenue Passenger Kilometer
Load Factor
Yield
Unit Cost
How airlines detect their ticket prices
BIBLIOGRAPHY
httpenwikipediaorgwikiAirlineEconomic_considerations
httpcatsrvsegmueduSYST660Chap3_Airline_Economics[2]pdf
httpwwwhavayolu101com20100831ucak-biletinin-fiyati-nasil-belirleniyorcontent-anchor
httpwwwslidesharenetpgarodiarevenue-passenger-kilometerrelated=1
httpocwmiteducoursesaeronautics-and-astronautics16-75j-airline-management-spring-2006lecture-noteslect2pdf
CONCLUSION
The basic measures for the calculate
profitloss for airline
Available Seat Kilometer
Revenue Passenger Kilometer
Load Factor
Yield
Unit Cost
How airlines detect their ticket prices
BIBLIOGRAPHY
httpenwikipediaorgwikiAirlineEconomic_considerations
httpcatsrvsegmueduSYST660Chap3_Airline_Economics[2]pdf
httpwwwhavayolu101com20100831ucak-biletinin-fiyati-nasil-belirleniyorcontent-anchor
httpwwwslidesharenetpgarodiarevenue-passenger-kilometerrelated=1
httpocwmiteducoursesaeronautics-and-astronautics16-75j-airline-management-spring-2006lecture-noteslect2pdf
BIBLIOGRAPHY
httpenwikipediaorgwikiAirlineEconomic_considerations
httpcatsrvsegmueduSYST660Chap3_Airline_Economics[2]pdf
httpwwwhavayolu101com20100831ucak-biletinin-fiyati-nasil-belirleniyorcontent-anchor
httpwwwslidesharenetpgarodiarevenue-passenger-kilometerrelated=1
httpocwmiteducoursesaeronautics-and-astronautics16-75j-airline-management-spring-2006lecture-noteslect2pdf