Analysis of Cost Structures and Cost Control Strategies of Airlines: An Empirical Study on A Hypothetical Airline Company

Autor:	Yaşar KÖSE, Ceyda AKTAN
Rok vydání:	2022
Předmět:	General Medicine Cost Control Operational Costs Cost-Volume-Profit Analysis Available Seat Miles Total Costs Social Sciences Interdisciplinary Sosyal Bilimler Disiplinler Arası
Zdroj:	Volume: 6, Issue: 1 42-49 Journal of Aviation
ISSN:	2587-1676
DOI:	10.30518/jav.1024489
Popis:	In the context of controlling costs in the airline industry, this study aims to determine empirically until which available seat mile (ASM) should an airline continue its activities based on an analysis of the costs and revenues incurred relating to these ASM. The study is based on a hypothetical company and the data used indicated that the company has reached profitability between certain efficiency levels (ASM). The results also showed that the airline can still continue its activities at efficiency levels where it is making a loss but only in situations where its total income exceeds its total variable costs (creating positive added value). In the study, it is pointed out that companies in the airline industry, which are under the pressure of intense competition and uncontrollable factors, can still survive and maintain their competitive power through the cost control methods they can apply.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::31107f37791e27367d89868c378e7304 https://doi.org/10.30518/jav.1024489 Zobrazit plný text záznamu