Using an operating cost model to analyse the selection of aircraft type on short-haul routes

Abstract

The airline industry is characterized by several challenging factors that include high capital costs, high operating costs and low profit margins. For the African situation, modernisation of fleets has been forced on the airlines by the stricter noise and security regulations. Even though governments have resorted to privatization, there are few investors interested in airlines, charging high airfares but continually operating at a loss. The aim of this paper is to apply a recently developed operating cost model to analyse suitable aircraft choices, for short haul routes, in terms of cost-related parameters, for aircraft commonly used within Africa. In this paper all the parameters that are crucial in analysing a transport service are addressed and the effect of passenger volume analysed. The model was applied to a specific route within Africa, and thereafter varying passenger numbers, to choose the least costly aircraft. The results showed that smaller capacity aircraft, even though limited by maximum range, are the most economical to run along routes even when the frequency of flights is high.