Sponsor Message:
Aviation Technical / Operations Forum
My Starred Topics | Profile | New Topic | Forum Index | Help | Search 
Station Revenue - Revenue Accounting  
User currently offlinexcltflyboy From United States of America, joined Nov 2011, 32 posts, RR: 0
Posted (2 years 10 months 7 hours ago) and read 2251 times:

This question is for those in airline revenue accounting: In determining how much revenue a station generates, how do the airlines assign ticket revenue to the stations of a given city pair? For example, a ticket is sold for JFK-LAX for $200. How much of that revenue is assigned to the JFK station, and how much is assigned to the LAX station? In my mind, the full $200 shouldn't be recorded as all JFK's revenue, because if it weren't for the pax wanting to travel to LAX, they would not have departed from JFK; shouldn't LAX receive some of the revenue?

I ask this question with the assumption that each station has their own profit & loss statements, i.e. airline management has to determine the profitability of each station. So, there has to be method to assign ticket revenue generated by each station.

Thanks in advance to anyone that can give me some insight into this accounting question!

3 replies: All unread, jump to last
 
User currently offlineXcltflyboy From United States of America, joined Nov 2011, 32 posts, RR: 0
Reply 1, posted (2 years 9 months 1 week 4 days 9 hours ago) and read 1916 times:

It seems that no one has an answer for me. Does anyone know if this topic has been addressed in another thread or resource they can point me to for more information on this topic? (I searched several times for such a thread/topic, but couldn't find one).

User currently offlineViscount724 From Switzerland, joined Oct 2006, 25170 posts, RR: 22
Reply 2, posted (2 years 9 months 1 week 3 days 5 hours ago) and read 1832 times:

In my experience, a JFK-LAX ticket sold at JFK would all be assigned to the point of sale, regardless whether it's a one way or round trip ticket. LAX isn't doing any of the work so why should they get any of the credit?

Works the same in the other direction where the revenue would be credited to LAX for sales made there, so why complicate things?

Of course if someone bought two one way tickets at each end of the route they would be assigned separately to each point of sale.

These days, with so many tickets purchased online, point of sale data is becoming less relevant. Airlines just want to make the sale regardless where it originates.

[Edited 2011-11-23 14:04:21]

User currently offlineXcltflyboy From United States of America, joined Nov 2011, 32 posts, RR: 0
Reply 3, posted (2 years 9 months 5 days 11 hours ago) and read 1601 times:

Quoting Viscount724 (Reply 2):

Thanks for the reply.

However, my question about revenue assignment is not cocerned with where a ticket is purchased, but simply the city pairs involved with a given ticket. As we both know, very few tickets are actually issued at airport ticket counters these days.

As a CPA, I know all to well how "bean counters" like to make revenue recognition as precise as possible. That's why I assumed that airlines would try to allocate revenue between city pairs involved on a given ticket. But, I do agree with you that assigning all the ticket revenue to the originating station would be the simpliest method.

Again, I appreciate your reply.


Top Of Page
Forum Index

Reply To This Topic Station Revenue - Revenue Accounting
Username:
No username? Sign up now!
Password: 


Forgot Password? Be reminded.
Remember me on this computer (uses cookies)
  • Tech/Ops related posts only!
  • Not Tech/Ops related? Use the other forums
  • No adverts of any kind. This includes web pages.
  • No hostile language or criticizing of others.
  • Do not post copyright protected material.
  • Use relevant and describing topics.
  • Check if your post already been discussed.
  • Check your spelling!
  • DETAILED RULES
Add Images Add SmiliesPosting Help

Please check your spelling (press "Check Spelling" above)


Similar topics:More similar topics...
Revenue Flights - Highest Cruising Altitude posted Sun Oct 28 2007 14:39:24 by MEL
IAD Metro Station Going To Be Aboveground posted Wed Jul 20 2011 13:54:52 by FRAIAD
A310 w/ flight engineer station posted Mon Jun 27 2011 10:28:51 by Chamonix
So Whats The Going Salary For A Station Manager? posted Sat Oct 2 2010 09:52:18 by Aviacsa737
Flight Accounting posted Fri Jun 25 2010 01:21:23 by faro
DC-9 Station Diagrams Needed posted Mon Jul 28 2008 10:53:20 by Jrheilig
Repair Statons/Svce Center Work Station Software? posted Tue Mar 7 2006 18:24:57 by G4doc2004
A319 #5 FA Station (swivel Seat) posted Mon Oct 28 2002 11:51:15 by LMML 14/32
B737 Fuel Station Question posted Wed May 1 2002 18:11:16 by Dripstick
VOR Ground Station posted Thu Oct 25 2001 08:18:55 by Diego

Sponsor Message:
Printer friendly format