Today`s tough competitive environment forces airlines to consider operational costs in every facet of their business. All ways and means to achieve this goal have to be rationally envisaged, safety being of course the prime factor in any airline opera...
Today`s tough competitive environment forces airlines to consider operational costs in every facet of their business. All ways and means to achieve this goal have to be rationally envisaged, safety being of course the prime factor in any airline operation. A wide spectrum of considerations intervene in this process stemming from airline economics, marketing management, crew scheduling, flight operations, engineering and maintenance management, technical condition of aircraft. The idea behind this paper is to revisit the cost index concept with a view towards balancing both fuel- and time-related cost. With a surge of fuel prices in the early 1970s both airlines and aircraft manufacturers started concentrating on systems for reducing fuel consumption. In some airlines, fuel cost at one point represented no less than 45%, but gradually decreased to a mere 20% effectively emphasizing the other aspects of the cost equation. The wide spread use of flight management systems since the late 1980s enabled airlines to take into account the other cost-and time-related aspects as well. In addition to navigation functions, the Flight Management Computer(FMC) carries out real-time performance optimization aimed at providing best economics, not necessary in terms of fuel consumption, but rather in terms of direct operating costs.