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readytotaxi
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An Aircrafts Profit During Its Life Time?

Fri Feb 25, 2011 5:22 pm

Is it possible for an airline to evaluate how much profit a frame produced during its life time with the airline?

I ask because I see BA are to scrap two 747 shortly after 22 years service.
Do airline say, It cost this much to buy,this much in maintenance and generated this much revenue, or is it not as basic as that?
you don't get a second chance to make a first impression!
 
roseflyer
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RE: An Aircrafts Profit During Its Life Time?

Fri Feb 25, 2011 7:41 pm

I have never seen an airline that breaks down costs to a per airplane cost. It is easy enough to get a fleet average cost for fuel, maintenance and crew, but things get confusing when you add overhead such as operations, management, reservations & airport staff, engineering and other fixed costs such as building rent, IT, finance costs, etc. Airlines are large companies and there is a lot of money spent supporting the airplanes that is not tied to any specific plane. Airlines usually break costs down by category such as wages 40%, fuel 30%, Maintenance 10%, etc.
If you have never designed an airplane part before, let the real designers do the work!
 
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readytotaxi
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RE: An Aircrafts Profit During Its Life Time?

Fri Feb 25, 2011 8:07 pm

Quoting RoseFlyer (Reply 1):

Thank you for that, I am surprised that Maintenance can be a low as 10% of an airlines costs. Good airline.
you don't get a second chance to make a first impression!

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