ATAM AERO-B - PowerPoint PPT Presentation

airline economics l.
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ATAM AERO-B

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Presentation Transcript

  1. Airline Economics

  2. Forecasting • It is the process of estimating the future trends by examining and analysing the available information. • Attempt to quantify demand in the future time period

  3. Purpose of Forecasting • Planning tool which helps to cope up with uncertainties in the future. • Short term forecast – Competitive situation, equipment needs • Medium term forecast – Route planning decisions • Long term forecast – Fleet Planning and Financial commitments

  4. Forecasting Techniques • Casual Methods • Time Series or Trend Projection • Moving average method • Delphi technique • Regression analysis • Exponential smoothing technique

  5. Trend projection: Chennai Airport

  6. GDP Forecast

  7. Advantages of forecasting • Helps to prepare for the future • Less time consuming • Economical for the company • Adjust the supply according to the future demand

  8. Passenger Capacity • Available Seat Kilometers (ASKs) measure an airline’s passenger carrying capacity. • ASKs is defined as the product of the numbers of seats available and the distance flown by those seats. • ASKs : No. of seats * Distance flown

  9. RPKs • Revenue Passenger Kilometers (RPKs) : It is defined as the product of revenue passengers carried and the distance flown by them. • RPKs : Revenue Passengers * Distance travelled

  10. Load Factor • Load Factor is defined as the ratio of RPKs to ASKs • Load Factor : RPKs/ASKs

  11. Example

  12. Example