Professional Documents
Culture Documents
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
Presented by
Joel LUNOT
Senior Consultant
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Colombo April 2004
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
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Colombo April 2004
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
4 BASIC PRINCIPLE:
Revenue per ASK each fiscal year must be higher than
cost per ASK.
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Colombo April 2004
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
ACTIVITY
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
REVENUES
4 Mail revenues
4 Other revenues
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
COSTS
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
COST CLASSIFICATIONS
4 Operating costs vs. Non operating costs :
Operating costs are all costs directly linked to flying activities : fuel,
cockpit crew etc. Non operating costs : interest, administrative
overheads etc.
4 DOC vs. IOC :
DOC are costs directly varying according to aircraft type (cockpit
crew, fuel, maintenance etc.). IOC are costs independent of aircraft
type (ground handling, passenger services, sales & promotion,
overheads).
4 Fixed & variable costs :
fixed costs are all costs independent of services offered : depreciation,
crew training, stations etc.
4 Traffic related costs :
All costs varying according to the number of passengers carried.
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Colombo April 2004
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
0 0
1975 1980 1985 1990 1995 2000 2005 1975 1980 1985 1990 1995 2000 2005
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Colombo April 2004
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
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Colombo April 2004
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
1 = Labor
700 2 = Fuel
3 = AC ownership
600 4 = Non AC ownership
500 5 = Professional services
6 = Food and Beverage
400 7 = Landing fees
300 8 = Maintenance material
9 = AC Insurance
200 10 = Non AC Insurance
100 11 = PAX Commissions
12 = Communication
0 13 = Advertising & promotion
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 14 = Utilities & Office supplies
15 = Other operating expenses
Index 1982 = 100 First half 2003 16 = Interest
17 = Composite
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Colombo April 2004
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
IOC:
7. Stations & Ground 13.0%
8. Cabin attendants 8.0%
9. Passenger service 6.7%
10. Load insurance 0.7%
11. Sales & Promotion 15.0%
12. General & Administration 5.2%
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
48,60%
51,40%
DOC IOC
DOC IOC
Flight Deck Crew 7,70% 5,20% Stations & Ground
9,30%
13%
Fuel & Oil Cabin attendants
2%
Maintenance & Passenger service
overhaul
15%
12% Load insurance
AC depreciation
8,70%
Rentals 8% Sales & Promotion
0,70%
Charges (en route, 6,70% General &
11,70% Administration
airport etc)
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Colombo April 2004
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
20,50%
22,50%
45,80% 35,90%
Traffic variable costs Flight variable costs Traffic variable costs Flight variable costs
Other direct costs Aircraft Other direct costs Aircraft
Support Support
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Colombo April 2004
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
Low-cost airlines :
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
Our industry is just now beginning to emerge from the worst crisis
in its one hundredyear history. Total airline losses since september
11 2001: 35 billion US dollars.
The US and the UE are single markets.
Also Africa is not Europe and Asia is not North America, it is not
inconceivable today to imagine for the future an African or an
Asian single market.
Overall international passenger traffic levels in 2003 will be 1%
lower than 2002, and still below year 2000.
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Colombo April 2004
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
4 UA = 10.14
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
LCCs in Europe
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
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Colombo April 2004
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
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Colombo April 2004
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
LCCs in Asia
4 Just starting : 1% of traffic (excluding Australia &
Japan) vs. 25% in US & 10% in Europe,
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.
A project supported by the European Commission, the European Industry and the Ministries responsible for Civil Aviation in Asia.