The Determinants of Airlines Tankering – An Empirical Analysis

• Main Authors: Shu-fen Sun, 孫淑芬
• Other Authors: Chih-hai Yang
• Format: Others
• Language: zh-TW
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/48740763949007279067

碩士 === 國立中央大學 === 產業經濟研究所在職專班 === 101 === The expense of jet fuel accounts for a large share of variable costs in the operation of commercial airlines. Saving the fuel cost is thus critical to reducing operating costs, thereby increasing revenue. Tankering, the purchase of fuel in excess of that immediately required for the next flight leg, simply means topping off the tanks at the cheaper stations to the extent the increased burn penalty and station supply allow. This thesis aims to examine the determinants of airlines tinkering in Taiwan. Based on the flights information regarding Taiwan to various cities of Asian countries in 2012, this study adopts both Probit model and Heckman’s two-stage model to implement empirical estimations. Results show that maximum takeoff weight and maximum landing weight are positively related to the propensity of tanking. Alternatively, the zero fuel weight of aircrafts (is correlated to the types of aircrafts) negatively influence the propensity of tinkering. Crucially, the fuel index serves one of key factors impacting on tinkering. A higher fuel index that the fuel price of destination airport is higher reduces the probability of tinkering significantly.