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OPERATING EXPENSE FORECASTING FOR SCHEDULED AIRLINE SERVICES
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English
Abstract
The overall schedule and profit planning process in an airline depends, in part, on the availability of reliable and sensitive tools and techniques for forecasting operating expense. Linear programming techniques may be a new approach for relating historical costs or manpower levels to causal volume variables. Two advantages over a multiple regression approach are that illogical or negative unit rates can be avoided, and the results of other studies or management judgment can easily be included. Logical cost-volume relationships developed by this technique can be used to rapidly develop operating expense forecasts with an expected high degree of accuracy, and to perform detailed analyses and comparisons of current cost or manpower levels.