THE MAIN COST-RELATED FACTORS IN AIRLINES MANAGEMENT

• Main Author: Olesya Suntsova
• Format: Article
• Language: English
• Published: National Aviation University 2016-03-01
• Series: Vìsnik Nacìonalʹnogo Avìacìjnogo Unìversitetu
• Subjects: air transportation; analytic hierarchy process; costs; strategies
• Online Access: http://jrnl.nau.edu.ua/index.php/visnik/article/view/9937
• ISSN: 1813-1166; 2306-1472

This paper analyzes the main factors that affect the strategies to reduce airlines costs. These costs factors were presented to experts from the airline industry through two rounds of questionnaires in sense tobe weighed. It was applied a method based on the structure of the AHP (Analytic Hierarchy Process) and the results show that the main important factors for a cost-related airlines strategy are, in importance: routestructure and mesh; type and characteristics of the aircraft; cost of labor and management quality. This hierarchycan help the decision maker when facing the need of defining priorities in reduction costs. past decades despitethe increase in air transportation and significant decrease in average operation costs, it is observed that airlineshave low profitability. The liberalization of the markets and increase opportunities for competition diminishesprices, even when airlines face increasing costs. Considering that advantage in costs is an important strategy forcarriers to remain in the market, this paper analyzes the main factors that affect the strategies to reduce airlinescosts. These costs factors were presented to experts from the airline industry through two rounds ofquestionnaires in sense to be weighed. It was applied a method based on the structure of the AHP (AnalyticHierarchy Process) and the results show that the main important factors for a cost-related airlines strategy are, inorder of importance: route structure and mesh; type and characteristics ofthe aircraft; cost of labor andmanagement quality. This hierarchy can help the decision maker when facing the need of defining priorities inreduction costs.