Analysis of Cost Structures and Cost Control Strategies of Airlines: An Empirical Study on A Hypothetical Airline Company

Authors : Yaşar KÖSE, Ceyda AKTAN

Pages : 42-49

Doi:10.30518/jav.1024489

View : 30 | Download : 12

Publication Date : 2022-03-23

Article Type : Research Paper

Abstract :In the context of controlling costs in the airline industry, this study aims to determine empirically until which available seat mile insert ignore into journalissuearticles values(ASM); should an airline continue its activities based on an analysis of the costs and revenues incurred relating to these ASM. The study is based on a hypothetical company and the data used indicated that the company has reached profitability between certain efficiency levels insert ignore into journalissuearticles values(ASM);. The results also showed that the airline can still continue its activities at efficiency levels where it is making a loss but only in situations where its total income exceeds its total variable costs insert ignore into journalissuearticles values(creating positive added value);. In the study, it is pointed out that companies in the airline industry, which are under the pressure of intense competition and uncontrollable factors, can still survive and maintain their competitive power through the cost control methods they can apply.
Keywords : Cost Control, Operational Costs, Cost Volume Profit Analysis, Available Seat Miles, Total Costs