The main cost-related factors in airlines management

Eller, Rogéria de Arantes Gomes; Moreira, Michelle

doi:10.1590/s2238-10312014000100002

Cited by 20 publications

(10 citation statements)

References 3 publications

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“…The study also discovered a weak negative negligible link between ROA and the exchange rate, annual loan rate, and annual average inflation. [17] investigated the major cost drivers in airline management. They investigated the major elements influencing airline cost-cutting initiatives.…”

Section: Literature Reviewmentioning

confidence: 99%

Evaluating the Drivers of Airlines Profitability in Nigeria Domestic Network

Amaechi,

Ibe,

Ejem

et al. 2022

JTTs

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A firm's profitability is critical to its competitiveness and sustainability. This research looked at the elements that influence airline profitability in Nigeria. From 2005 to 2019, two airlines were picked, and their data were retrieved from Nigerian Civil Aviation Authority (NCAA). From estimated quarterly panel data using E-views 8 and SPSS 22, the overall findings of the regression study demonstrate that with ROA used as a proxy for profitability, the R-square is 83.6 per cent and 89.4 per cent, respectively for Aero contractors and Medview airline, representing 83.6 per cent and 89.4 per cent of the changes in profitability of the Aero contractors and Medview in the sample, respectively, could be explained by changes in the study's independent variables, namely growth, liquidity, leverage, lease, tangibility, fuel cost and personnel cost. Besides the total of the explanatory variables, growth, leverage and tangibility are statically significant at a 5% level of significant Aero Contractors. Growth, leverage, leasing cost, fuel cost, and staff cost, on the other hand, are statistically significant at the 5% level of significance for Medview airlines. Profiteering, expansion, leverage, and tangibility are the primary activities of any airline firm. Lease cost, fuel cost, and staff cost show a statistically significant positive link with the profitability metric ROA. As a result, stakeholders of Nigerian airlines should prioritize profitability over other criteria in this study. Airline executives should do a comprehensive analysis of all potential elements impacting their company's profitability in the literature, including aspects other than economic variables. According to the findings of this study, political issues account for a greater proportion of the reasons why airlines fail in Nigeria.

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Section: Literature Reviewmentioning

confidence: 99%

Evaluating the Drivers of Airlines Profitability in Nigeria Domestic Network

Amaechi,

Ibe,

Ejem

et al. 2022

JTTs

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“…Maintenance cost include machine equipment purchase costs, quality inspection costs and hangar costs, whereas passenger service cost consists of cost of meals, beverages and cabin crew supplies. Lastly, travel agents' commissions fall under reservations and sales costs (Eller & Moreira, 2014).…”

Section: Costmentioning

confidence: 99%

Dimensionality and validity of the operational performance construct in the aviation industry: a factor analytic approach

Sylva¹

2020

Pressacademia

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Purpose-Operational performance is critical to competitive advantage, market share and financial performance of organisations. These benefits of operational performance translate to the socioeconomic growth and development of nations. Despite the relevance of this construct, there is paucity of validated scales on it in the airlines' sector. This study, therefore, conceptualized, dimensionalized and validated the operational performance construct in the civil aviation sector. Methodology-I exhumed 49 items from the vast literature on operational performance in several sectors, including the airline industry. I contacted managers in the aviation sector and experts in the field to confirm face and content validity. I then engaged an initial sample of 213 workers in the 18 Nigerian domestic airlines and subjected the proposed items to Exploratory Factor Analysis (using IBM SPSS version 27). Furthermore, I enlisted another sample of 201 respondents and used the second set of data to conduct a Confirmatory Factor Analysis (using IBM SPSS Amos version 26). Findings -The initial 49 items passed the test of face and content validity. Exploratory Factor Analysis resulted in the extraction of 29 items from the initial 49 items, representing five principal components (quality, cost, responsiveness, innovation and safety). Upon Confirmatory Factor Analysis, the final 29-item instrument passed the tests of validity and reliability. The proposed overall measurement model had a good fit with the sample data. Conclusion-Based on the findings, the study emphasized the need for managers in the airline sector to be aware that the twenty nine observable indicators validated in this study can be deployed to improve their organisations' operational performance via quality, cost, responsiveness, innovation and safety. The paper reveals some methodological limitations and suggested that structural models on the nexus between operational performance and other variables, such as organizational culture and environmental turbulence, be developed and tested in diverse settings.

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“…ground crew; and transport; handling fees, passenger services – e.g. flight crew salaries (could be DOC), and passenger insurance, ticketing, sales, advertisement and administrative duties (Belobaba et al , 2016; Eller and Moreira, 2014).…”

Section: Introductionmentioning

confidence: 99%

Minimization of aircraft fuel consumption subjected to arrival time constraint

Gilani

Körpe

2020

AEAT

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Purpose This paper aims to minimize aircraft fuel consumption during the cruise phase when the flight is subjected to a specific time of arrival for different weights and distances. Design/methodology/approach The approach adopted herein uses sequential quadratic programming algorithm from MATLAB optimization toolbox, which includes a mathematical model of a jet airliner based on the Base of Aircraft Data as a function evaluator, to find out the impact of meet-time of arrival constraints on fuel consumption. The cruising speeds at predefined segments and the altitude are defined as the design variables. Findings The algorithm determines the optimum cruise altitudes and speeds for minimum fuel consumption in the case of no time constraints, also, for different time constraints where the flight time shall be reduced by increasing speed and lowering the altitude in most of the investigated cases. Practical implications The algorithm computes the optimum speed and the altitude according to different flight scenarios with the meet-time of arrival constraints for minimum fuel consumption which affects the direct operating cost of the flight. The algorithm might greatly help in decision-making for the meet-time of arrival operations. Originality/value Developing an algorithm to optimize the speed and the altitude of an aircraft based on weight and range for minimization of fuel consumption. It is a pioneer study in the literature that deals with the effect of meet-time constraints on fuel consumption.

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The main cost-related factors in airlines management

Cited by 20 publications

References 3 publications

Evaluating the Drivers of Airlines Profitability in Nigeria Domestic Network

Evaluating the Drivers of Airlines Profitability in Nigeria Domestic Network

Dimensionality and validity of the operational performance construct in the aviation industry: a factor analytic approach

Minimization of aircraft fuel consumption subjected to arrival time constraint

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