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  • Direct Vs Indirect Costs

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    Direct costs are those costs that can be traced directly to a specific product or service, such as fuel costs for a particular flight. Indirect costs are those that cannot be directly tied to an individual product or service, such as maintenance costs for an airline's fleet. It is important for airlines to track and allocate both direct and indirect operating costs to specific routes, aircraft, or other cost centers in order to understand their profitability and make informed business decisions. Common direct costs include fuel, airport charges, and flight crew expenses, while indirect costs include maintenance, reservations, and administration.

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    List of all links required to understand about direct and indirect cost of an airline

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    Direct vs Indirect Costs

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    Direct costs are those costs that can be traced directly to a specific product or service, such as fuel costs for a particular flight. Indirect costs are those that cannot be directly tied to an individual product or service, such as maintenance costs for an airline's fleet. It is important for airlines to track and allocate both direct and indirect operating costs to specific routes, aircraft, or other cost centers in order to understand their profitability and make informed business decisions. Common direct costs include fuel, airport charges, and flight crew expenses, while indirect costs include maintenance, reservations, and administration.

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    68 views2 pages

    Direct Vs Indirect Costs

    Uploaded by

    Bala
    Direct costs are those costs that can be traced directly to a specific product or service, such as fuel costs for a particular flight. Indirect costs are those that cannot be directly tied to an individual product or service, such as maintenance costs for an airline's fleet. It is important for airlines to track and allocate both direct and indirect operating costs to specific routes, aircraft, or other cost centers in order to understand their profitability and make informed business decisions. Common direct costs include fuel, airport charges, and flight crew expenses, while indirect costs include maintenance, reservations, and administration.

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    Flag for inappropriate content
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    of 2

    http://www.aviationpros.

    com/article/10387214/costs-can-come-in-many-flavors-part-2-direct-vs-
    indirect-costs

    https://dwuconsulting.com/airport-finance/articles/operating-expenses-and-allocation

    Decent ppt

    https://ocw.mit.edu/courses/aeronautics-and-astronautics/16-75j-airline-management-spring-
    2006/lecture-notes/lect3.pdf

    Basic def with tab link

    http://www.audriesaircraftanalysis.com/direct-and-indirect-operating-costs/

    Understanding cost part II

    https://www.conklindd.com/t-understandingyouraviationcostspartii.aspx

    https://www.conklindd.com/t-understandingyouraviationcostpart1.aspx

    Wikipedia airline glossary

    https://en.wikipedia.org/wiki/Airline_cost_glossary

    Ebook very good

    https://books.google.co.in/books?id=FVRWBQAAQBAJ&pg=PA54&lpg=PA54&dq=direct+and+indirec
    t+cost+of+an+airline&source=bl&ots=EAxeHzVs5v&sig=Pk3EUx4zfi4wkRPcs881012kSus&hl=en&sa=
    X&ved=0ahUKEwim5svqrZXVAhWCvbwKHe0oARo4KBDoAQgoMAE#v=onepage&q=direct%20and%2
    0indirect%20cost%20of%20an%20airline&f=false

    page 48

    Elsvire paper https://www.deepdyve.com/lp/elsevier/operating-costs-and-capacity-in-the-airline-


    industry-5OeVTmP8pu?
    Other paper analytical method
    https://iris.unipa.it/retrieve/handle/10447/48504/29627/An%20analytic%20hierarchy%20process%
    20for%20ranking%20operating%20costs%20of%20low%20cost%20and%20full%20service%20airline
    s.pdf

    Best

    https://books.google.co.in/books?id=U8Kc3lVq4LoC&pg=PA100&lpg=PA100&dq=why+airline+alloca
    te+direct+and+indirect+operating+cost&source=bl&ots=3Yam1c6Dio&sig=kBV_hJd1JvpUQQElCX4To
    0qLqNc&hl=en&sa=X&ved=0ahUKEwi8lvKs0pXVAhVF2LwKHZtFCMk4ChDoAQgqMAE#v=onepage&q
    =why%20airline%20allocate%20direct%20and%20indirect%20operating%20cost&f=false

    Operating decisions same book

    https://books.google.co.in/books?id=QbqLAgAAQBAJ&pg=PT152&lpg=PT152&dq=why+airline+alloc
    ate+direct+and+indirect+operating+cost&source=bl&ots=HpxRLFtwrB&sig=-dgLhY-
    NbtP6ewOyDefROTiKkW4&hl=en&sa=X&ved=0ahUKEwi8lvKs0pXVAhVF2LwKHZtFCMk4ChDoAQgtM
    AI#v=onepage&q=why%20airline%20allocate%20direct%20and%20indirect%20operating%20cost&f
    =false

    Good

    https://books.google.co.in/books?id=Ej8Qslt1nfsC&pg=PA308&lpg=PA308&dq=why+airline+allocate
    +direct+and+indirect+operating+cost&source=bl&ots=ELzsJSlY09&sig=Ri8F1CyP-
    QULhQI3g80qaKGWEdE&hl=en&sa=X&ved=0ahUKEwi8lvKs0pXVAhVF2LwKHZtFCMk4ChDoAQhAMA
    Y#v=onepage&q=why%20airline%20allocate%20direct%20and%20indirect%20operating%20cost&f=
    false

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