Cost Economics of Aircraft Size
By Wenbin Wei, M. Hansen. Journal of Transport Economics and Policy, 2003
110 citations recorded by the source corpus.
The authors study the relationship between aircraft cost and size for large commercial passenger jets. Based on a translog model, they develop an econometric cost function for aircraft operating cost and find that economies of aircraft size and stage length exist at the sample mean of their data set, and that for any given stage length there is an optimal size, which increases with stage length. The scale properties of the cost function are changed considerably if pilot unit cost is treated as endogenous, since it is correlated with size. The cost-minimising aircraft size is therefore considerably smaller, particularly at short stage lengths, when pilot cost is treated as endogenous, and this helps to explain why US airlines expect to accommodate future traffic growth with more flights instead of larger planes.
Subfields: Aerospace Engineering, Economics and Econometrics, Strategy and Management
View Paper: https://www.semanticscholar.org/paper/7d0b19c8cace9f59b9b3d6f8505da86f944e524b
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Citations in the corpus
- On the Factors that Affect Airline Flight Frequency and Aircraft Size (2010, background): “Pilots receive higher salaries for flying larger aircraft, leading airlines to prefer in some cases the use of smaller aircraft in short-haul, high density markets (Wei and Hansen, 2003).”