scholarly journals Cost Economies for an Airline: An Analysis of Airlines’ Operating Costs

2019 ◽  
Vol 12 (3) ◽  
pp. 1856-1859
Author(s):  
Harendra Nishantha Kariyawasam
Keyword(s):  
Economies Of Scale ◽  
Low Cost ◽  
Operating Cost ◽  
Operating Costs ◽  
Asia Pacific ◽  
Profit Margins ◽  
Cost Structures ◽  
Low Cost Carriers ◽  
Average Operating ◽  
The Cost

This study focuses on analyzing the variables affecting the average operating cost per aircraft movement. Since airlines around the world are operated on thin profit margins and with increasing competition from Low Cost Carriers it will be important for an airline to get a complete understanding about their operating cost structure. The aim of this study is to suggest an airline of actions to reduce their operating cost and will differentiate the cost structures of Low Cost Carriers and Full Service Carriers. This study was conducted for 20 airlines which were operating in Asia Pacific region. Published financial and statistical data were used for analysis and a parametric approach was used. The results of this study do not suggest economies of scale for the airline, which is to have higher number of aircraft to reduce cost.

scholarly journals The Costs of Producing Biodiesel from Microalgae in the Asia-Pacific Region

2013 ◽  
Vol 2 (3) ◽  
pp. 105-113 ◽  
Author(s):  
G.J. Griffin ◽  
D.F. Batten ◽  
T. Beer ◽  
P.K. Campbell
Keyword(s):  
Low Cost ◽  
Operating Cost ◽  
Asia Pacific ◽  
Pacific Region ◽  
Asia Pacific Region ◽  
Cost Estimates ◽  
The World ◽  
Resource Availability Cost ◽  
The Cost ◽  
High Degree

Capital and operating cost estimates for converting microalgae to oil or biodiesel are compared. These cost comparisons are based on Australian locations, which are expected to fall at the lower end of the cost spectrum in the Asia-Pacific Region and other parts of the world.  It is assumed that microalgae are grown in a concentrated saltwater medium in raceway ponds, then are harvested, dewatered and the oil is extracted and converted to biodiesel by transesterification. The size of the desired pond system affects the number of potential locations due to constraints in resource availability. Cost estimates vary significantly due to differences in the assumed oil productivity, the harvesting equipment and the method of converting residual biomass to electric power. A comparison is made with recent cost estimates from other parts of the world, in which the expected costs of microalgae oil production from a number of publicly available sources lay between 0.34–31.0 USD/L.  The resulting cost estimates of between 1.37—2.66 USD/L are at the lower end of this scale, thereby confirming that Australia has the potential to be a low-cost producer of algal oil and biodiesel in the Asia-Pacific Region.  It was significant that, despite similar assumptions for the microalgae-to-oil process, cost estimates for the final biodiesel or oil price differed by a factor of 2.  This highlights the high degree of uncertainty in such economic predictions. Keywords: Asia-Pacific region; biodiesel; economics; microalgaeThis article is cited as :Griffin, G., Batten, D., Beer, T., & Campbell, P. (2013). The Costs of Producing Biodiesel from Microalgae in the Asia-Pacific Region. International Journal Of Renewable Energy Development (IJRED), 2(3), 105-113. doi:10.14710/ijred.2.3.105-113Permalinkhttp://dx.doi.org/10.14710/ijred.2.3.105-113

Competition between Asian Network Airlines and Low-Cost Carriers

2015 ◽  
Vol 2501 (1) ◽  
pp. 56-65
Author(s):  
James Pearson ◽  
John F. O'Connell ◽  
David E. Pitfield ◽  
Tim Ryley
Keyword(s):  
South Asia ◽  
Low Cost ◽  
Asia Pacific ◽  
Questionnaire Data ◽  
Value For Money ◽  
Profit Margins ◽  
Low Cost Carriers ◽  
Customer Dissatisfaction ◽  
Level Of Importance ◽  
Strategic Capability

Asia Pacific is increasingly at the forefront of world aviation, and low-cost carriers (LCCs) there now have 26% of all seats. This amount rises to 57% in Southeast Asia and 56% in South Asia. Clearly, Asian network airlines are very exposed to LCCs, and there are many consequences, such as lower financial performance from inadequately meeting the expectations of customers, offering insufficient value for money, and customer dissatisfaction. It is crucial that Asian network airlines respond expeditiously and appropriately to LCCs. This paper looks at the strategic capability of 22 Asian network airlines in competing with LCCs on the basis of analyzing questionnaire data from these airlines with respect to the level of importance and difficulty of 37 competitive responses across six response categories. Fundamentally, this paper concerns only their capability in competing with LCCs and does not consider their overall strength. This paper also identifies the importance and difficulty of all 37 responses and how the response categories vary by airline, while linking strategic capability with profit margins. The results show that strategic capability varies widely, with Vietnam Airlines possessing the strongest strategic capability and SilkAir, the weakest. Of airlines that compete heavily with LCCs, Garuda Indonesia has strong capability, while Thai Airways and Philippine Airlines do not. For all 22 Asian network airlines, quickly introducing changes, leveraging brand strength, and increasing aircraft use are the most important responses, and there is a reasonably strong correlation between strategic capability and margin, suggesting that those airlines with strong capabilities should achieve higher margins.

Convergence of Facilities in Low Cost Operation Areas

2008 ◽  
pp. 303-314
Author(s):  
Toru Higuchi ◽  
Marvin Troutt
Keyword(s):  
Life Cycle ◽  
Economies Of Scale ◽  
Low Cost ◽  
Manufacturing Facilities ◽  
The Cost

In this chapter, the convergence of manufacturing facilities is discussed. Very little room is left for the differentiation of products in the late standardized stage. Although companies source globally to reduce the cost, they should cut down their cost even further. In addition, the demand for a product begins to decline sharply at the end of the life cycle because of the saturation of the market or the emergence of alternative products. As a result, companies should make the most of economies of scale in a low cost operation area. Companies converge their manufacturing facilities into low cost operation areas or withdraw completely from the market.

Ailing Kenyan carrier will face more competition

2016 ◽  
Keyword(s):  
Airline Industry ◽  
Low Cost ◽  
Air Travel ◽  
Recovery Strategy ◽  
East African ◽  
Content Type ◽  
Profit Margins ◽  
Low Cost Carriers ◽  
Fuel Costs ◽  
Air Carriers

Significance Despite low fuel costs and the global airline industry running profitable operations, Kenya Airways has recorded multiple years of losses, leading the company to consider a recovery strategy that includes selling aircraft and shedding jobs. Impacts East African air carriers could benefit from industry rationalisation, but domestic political concerns could obstruct regional reforms. Low-cost carriers have emerged in Africa but struggle to make headway against publicly owned airlines. Once Kenya Airways exits fuel-hedging commitments, lower prices should improve profit margins. Without airline liberalisation and local carrier rationalisation, foreign airlines will benefit most from growing African air travel. Government protectionism, high taxes and regulation will restrict competition, especially from low-cost carriers.

scholarly journals ECONOMIC AND OPERATIONAL ANALYSIS OF MECHANIZED FOREST IMPLEMENTATION

2020 ◽  
Vol 44 ◽  
Author(s):  
Nilton Cesar Fiedler ◽  
Alexandre Arantes de Campos ◽  
Marcos Vinicius Winckler Caldeira ◽  
Julião Soares de Souza Lima ◽  
Antônio Henrique Cordeiro Ramalho ◽  
...  
Keyword(s):  
Operating Cost ◽  
High Energy ◽  
Northern Region ◽  
Production Costs ◽  
Operating Costs ◽  
Operating Cycle ◽  
Cycle Times ◽  
Waste Removal ◽  
The Cost ◽  
Efficiency And Productivity

ABSTRACT Mechanization in forestry implantation demands high energy, time, and high operational and production costs. Thus, studies related to the influence of variables on the efficiency of these activities are essential to reduce costs and optimize operations. The objective of this study was to evaluate the operational and cost performance of mechanized forest implantation operations in Eucalyptus sp. Data were collected from eucalyptus plantations located in the northern region of the state of Espírito Santo, Brazil. The analysis of operational performance determined the distribution of operating times, mechanical availability, degree of utilization, operational efficiency, and productivity of the machines. The cost analysis estimated the operating costs in forestry implantation activities. The forest planting operations were: waste removal, subsoiling, digging with fertilization, planting, chemical weeding, and covering fertilization. According to the results, planting (39.20%) and waste removal (15.99%) represented the longest operating cycle times, the shortest production times (51.48% and 53.64%), and finally the longest maintenance times (32.95% and 29%). Chemical weeding and subsoiling showed the lowest maintenance times (4.64% and 3.47%). The cover fertilization was the operation that presented the highest productivity (2.99 ha he-1), and the removal of residues had the lowest (0.97 ha he-1). The highest costs per effective hour (R$13.57 he-1) and lowest production costs (R$81.59 ha-1) occurred at planting. Subsoiling had the highest production cost (R$112.80 ha-1). The lowest operating cost was obtained in the fertilizing operation. Operating costs had the greatest weight in labor, fuel, and maintenance and repairs.

scholarly journals Strategi Pengendalian Biaya sebagai Alat Perencana Laba

Media Wisata ◽  
2021 ◽  
Vol 4 (1) ◽  
Author(s):  
Budi Hermawan
Keyword(s):  
Operations Management ◽  
Cost Control ◽  
Control Strategies ◽  
Low Cost ◽  
Operating Costs ◽  
Intended Purpose ◽  
The Cost

Controlling costs is one of the most important elements in the management of profit. Controlling costs is an act that was carried out continuously to control the costs to be able to generate revenue and profits in accordance with the intended purpose of management. Cost control is good and not always at a low cost. In general the company’s operations, management is always trying to achieve low cost, but it is not entirely correct. In some situations, increased costs may be the best action to improve profits. Management may take a few steps to cost control strategies to manage the company in achieving profits, as follow: control by increasing sales; controlling the cost of goods sold and gross profit; evaluate the operating costs and focus on the management of profit centres of activity

scholarly journals IMPLEMENTATION OF A SPECTROPHOTOMETER TEACHING AND LOW COST: APPLICATION IN PHYSICS AND CHEMISTRY LABORATORIES FAFISM

2014 ◽  
Vol 39 (1) ◽  
pp. 131
Author(s):  
Kátia Isabel Milagres ◽  
Camila Rodrigues Amaral ◽  
Érica M. da Silva Santos ◽  
Tarcísio B. Marques ◽  
Guilherme De O. Gomes
Keyword(s):  
Visual Field ◽  
School Improvement ◽  
Chemical Analysis ◽  
Low Cost ◽  
Operating Cost ◽  
Practical Solution ◽  
Quantitative Technique ◽  
Physical Chemical ◽  
The Cost ◽  
Analytical Laboratories

The photometry in the visual field has wide application in analytical laboratories and research physical, chemical, biochemical, pharmacological, etc. It is essential that students of physics and chemistry have knowledge about this quantitative technique. One obstacle to the widespread use of this technique is the cost of equipment and materials to be used. The objective of this work is the introduction of a photometer didactic, whose construction and technique with a low operating cost and the easy using and producing results, as a practical solution to put school improvement. The features highlighted in the work do the proposed photometer an economically viable alternative tool for chemical analysis in the laboratories of the Faculty for research and / or teaching.

scholarly journals Pengaruh Service Quality, Customer Satisfaction, dan Brand Trust di Mediasi Oleh Customer Commitment Terhadap Customer Loyalty Penumpang Maskapai Low Cost Carrier Di Bali

2018 ◽  
Vol 1 (2) ◽  
Author(s):  
Dewa ayu Alit Lakhsmidevy
Keyword(s):  
Customer Satisfaction ◽  
Service Quality ◽  
Customer Loyalty ◽  
Low Cost ◽  
Operating Cost ◽  
Brand Trust ◽  
Customer Commitment ◽  
Low Cost Carriers ◽  
Low Cost Carrier ◽  
Total Indirect Effect

Kebutuhan masyarakat Indonesia atas layanan transportasi terus meningkat sesuai dengan meningkatnya pembangunan nasional. Jenis layanan transportasi udara juga terus berkembang, salah satu adalah dengan beroperasinya model penerbangan unik yaitu melalui strategi penurunan operating cost di semua lini yang mengakibatkan harga tiket dapat ditekan. Model penerbangan ini disebut low cost carrier (LCC). Kepuasan konsumen terhadap pelayanan yang diberikan oleh maskapai penerbangan di Indonesia sangat berpengaruh terhadap seberapa besar tingkat kualitas pelayanan dari sebuah maskapai penerbangan. Berbagai pelayanan yang mempengaruhi, kepuasan konsumen adalah keramahan seluruh awak kabin, fasilitas fisik yang ada, tarif penerbangan, ketepatan waktu keberangkatan kemudahan akses dan juga keselamatan penerbangan. Berdasarkan jajak pendapat dari 2.674 orang responden mengenai apa yang diinginkan dari sebuah maskapai penerbangan didapatkan hasil sebanyak 9,6% menginginkan pelayanan ramah dari awak kabin, 16,9% penerbangan yang tepat waktu, armada yang baru 18,3%, 55,2% tarif yang murah (Indopos. 2015). Maskapai penerbangan di Indonesia sering mengalami keterlambatan waktu pada saat akan terbang atau dengan kata lain sering mengalami delay. Salah satu maskapai penerbangan di Indonesia yang sering mengalami keterlambatan dalam pemberangkatan pesawat adalah penerbangan low cost carriers. Secara garis besar tujuan penelitian ini adalah : menguji pengaruh service quality, customer satisfaction, brand trust terhadap costumer commitment serta dampaknya kepada customer loyalty pada penerbangan domestik maskapai low cost carrier di Bandara Internasional Ngurah Rai, Bali. Dengan unit observasi sebanyak 250 responden yang terdiri dari beberapa kriteria responden. Metode penelitian adalah explanatory survey. Hasil pengujian menunjukkan total indirect effect paling tinggi adalah pengaruh service quality terhadap customer loyalty dengan nilai t value sebesar 4,074, selanjutnya service quality terhadap customer commitment dengan nilai t value sebesar 3,243 di ikuti dengan sisa variabel lainnya. Hasil ini menunjukkan bahwa service quality merupakan variabel yang mendominasi pada hasil penelitian yang dilakukan. Semakin baik service quality yang diberikan maskapai kepada penumpang maka akan meninggkatkan komitmen penumpang dan selanjutnya akan menggiring penumapng untuk semakin loyal kepada maskapai.

scholarly journals An Empirical Study on the Influence of Diversification on the Operating Cost of Commercial Banks

CONVERTER ◽  
2021 ◽  
pp. 757-770
Author(s):  
Jing He, Ke Zou, Xinyi Cai
Keyword(s):  
Strategic Alliances ◽  
Commercial Banks ◽  
Management Strategies ◽  
Operating Cost ◽  
Operating Costs ◽  
Economies Of Scope ◽  
Excessive Competition ◽  
Income Ratio ◽  
The Cost ◽  
The Impact

The majority of the literature has focused on the impact of diversification on bank performance, while the research on the impact of diversification on bank costs is inadequate. Therefore, in this paper we empirically analyzed the impact of diversification on operating costs through a panel regression model, collecting the data of 47 Chinese commercial banks from 2005 to 2015. The empirical results showed that an increase in the non-interest income ratio significantly promoted a decrease in the cost–income ratio, and the robustness tests of different time intervals and different types of banks were consistent. This suggests that diversification effectively reduced the operating costs of banks by means of the sharing of information and equipment, the reduction of asset specificity, and the improvement of operation management synergy. This also indicates that excessive competition costs and the agency costs of diversification were lower. Further analysis showed that the diversification of national banks compared with local banks was more significant in reducing operating costs, and, for the national banks, the effects of economies of scope and scale were stronger. Diversified management strategies for local banks should be carefully promoted through the construction of strategic alliances, mergers and acquisitions, etc.

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