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NATIONAL AVIATION UNIVERSITY
Department of Aviation Transportation Organization
TERM PAPER
From the subject Air Passenger Transportations
Theme: Organization of Schedule Air Passenger Transportation En-route
KBP-JFK
Done by: student of the group 309
Faculty of Management and Logistics
Kiziun O.O.
Variant # 6
Supervisor: Ph.D. Tetiana A. Akimova
Kyiv 2011
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Report
This work has 38 pages includes 18 tables, 4 diagrams, 15 points of references.
The aim of this term paper is to:
to make a market research of air passenger transportation between Ukraine-USA,
development of a new flight schedule for this route, choosing to purchasing type for AC (loan or lease), calculation of cost per seat.
So in this term paper was analyzed the market of air passenger transportation between
Ukraine and the USA, were identified competitive forces already operating in this
area; defined what exactly attracts aviation passenger traffic between Ukraine and the
United States and why the development require another flight. Was also presented
forecasts for air passenger and their development prospects on the route Kyiv - New
York. Yet I was considered the main legal issues in international air law, and that all
relations between Ukraine and the USA. Finally, we designed the new schedule for
flights, have selected an aircraft, which will carry out flights on this route, it became
- Boeing 767-300ER long haul passenger aircraft, calculated the best options to
purchase aircraft, as well as the cost of one seat airplane.
Key words: aircraft, flight schedules, lease, loan, hub, conventions, treaties, air
transportation between Ukraine and the USA, legal, commercial law, the cost of
flight and the cost of an airplane seats and fare for the flight.
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Content
1. Introduction....52. Air transportation market research between USA and
Ukraine....6
3. Passenger transportation forecast........134. Legal side....155. Schedule planning...186. Selecting of aircraft............207. Calculation of the flight cost price..228. Tariff policy....369. Conclusions................3710.References...38
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Introduction
To organize the air transport of passengers successfully we need to identify the
air transportation market. Air transportation market is a set of proposed haul airline
transportation services by air and solvent demand for this type of transport. A deep
and comprehensive study of demand for air transport significantly affects the
efficiency of airline flight park, and thus the overall outcome of their financial
activities.
The major condition for the existence of aviation market is the demand for air
transportation and carriers that can provide appropriate services.
Today 11 domestic airlines have regular flights in 42 countries of the world.
Still far as to foreign airlines in terms of traffic, and on the frequency of flights. Total
volume of passenger traffic by foreign airlines on average 15% higher and in some
areas their advantage even greater. As before, the biggest volume of passenger traffic
between Ukraine and Russia, Germany, Czech Republic, Great Britain, Hungary,
Austria, Israel, Turkey, Poland, the Netherlands, the United States. In recent years,
Ukraine has gained market access to distant air. Market haul flights - in America,China, Thailand and other far countries - the last time Ukraine was unavailable. In the
absence of effective machinery passengers had transfer point in hub in Europe and
other regions. Aircraft that previously used, such as Il-62, have long been unable to
compete with Western counterparts. In addition to foreign airports to Soviet-made
equipment are being restricted flights, increasing fees for services, etc.
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Air Passenger Market Research En-route Ukraine-USA
Another stimulus to the market flights USA-Ukraine was received in 2003
after the opening of direct flights by airline Aerosvit. Nonstop flights from Kyiv to
New York Ukrainian carrier resumed four years after the termination of their state
company "Airlines of Ukraine". Then in 1999, the U.S. cut off for Il-62 of "Airlines"
as such does not meet the country introduced the environmental and noise restrictions
for aircraft.
Aerosvit took into account the lessons of predecessors for reclaiming of
Transatlantic it started to operate long-haul Boeing-767 and began to build an
extensive network of ticket sale to the U.S.. At the same time to cooperate actively
involved in the sale of ethnic agencies that worked with former compatriots. As a
result, less than a year on its flights from New York Airport.after Jh. Kennedy to
Boryspil, company managed to attract the "Ukrainian" passenger, who was
previously distributed between foreign carriers (Lufthansa, Czech Airlines, Air
France, British Airways, Austrian Airlines and others).
Of course, the opportunity to expand its presence in the Ukrainian sectorbenefited Transatlantic and European airlines. They, with the consent of the aviation
authorities of Ukraine, twice or three times increased the intensity of flights between
Boryspil and airport-based (Munich, Vienna, Paris, Amsterdam, London). As a result
of increased outflow of Ukrainian passengers on flights to North America via Europe
"hubs". American Airlines also did not hide intentions to gain a foothold in Europe
and in Ukraine in particular. But until recently to open non-stop flights to Kyiv mostplayers do not dare. At the Ukraine-USA they would prefer to work together with its
European partners in air alliances: Europeans took out his base in Kiev "hub", and
Americans - were transported across the Atlantic. The first overseas companies to
own land on the market, New York - Kyiv was used Delta Airlines.
Let`s analyze the dynamics of GDP growth in Ukraine and New York.
According to State Statistics Committee of Ukraine have the following
characteristics:
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Years GDP mln.$
2000 170070
2001 204190
2002 225810
2003 267344
2004 345113
2005 441452
2006 544153
2007 720731
2008 948056
2009 914720
Table 1
Dynamic of GDP Growth in Ukraine
Diagram 1
y = 92790x - 32179
R = 0.9204
0
200000
400000
600000
800000
1000000
1200000
1400000
200120022003200420052006200720082009201020112012
Series1Linear (Series1)
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According to American web-site of statistics there is following data
Years GDP bil.$
2003
13596
2004 13658
2005
13795
2006
13 892
2007 13928
2008 14 060
2009 14 002
2010 14560
Table 2
Dynamic of GDP Growth in USA
Diagram 2
While analyzing this data we can see that GDP tend to growth. Trade and
cooperation between USA and Ukraine develop very fast. Lets consider goods
turnover between this two countries.
y = 76.964x + 13539
R = 0.9245
13200
13400
13600
13800
14000
14200
14400
2003200420052006200720082009201020112012
Series1
Linear (Series1)
Linear (Series1)
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Export (k.USD) Import (k.USD) Goods turnover(k.USD)
2001 124100,0 278400,0 402500,0
2002 134100,0 210000,0 344100,0
2003 178900,0 253800,0 432700,0
2004 242800,0 202900,0 445700,0
2005 281400,0 312700,0 594100,0
2006 316100,0 277100,0 593200,0
2007 407904,2 310776,5 718680,7
2008 551390,0 319483,5 820873,5
2009 441454,9 302327,3 743782,2
2010 500256.0 345748.3 800345.3
Table 3
Dynamic of Goods Turnover
Diagram 3
We see the trend of growing goods turnover between Ukraine and USA. It
means the development of economic relationships between countries. On passenger
y = 61915x + 262161
R = 0.9215
0
200000
400000
600000
800000
1000000
1200000
200120022003200420052006200720082009201020112012
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turnover and passenger flow a number of socio-economic factors have influence. The
greatest amount of people which travel are after 35 years old.
Entry of foreigners from USA to Ukraine from 2006 till 2009
Amount
of
foreigne
rs came
to
Ukraine/
Total
:
Officials,
diplomatic
Turis
m
Private Educ
ation
Working Immigration Sport&cult
ural
exchange
2006 113507 18730 41420 46512 181 39 267 6358
2007 132376 19828 50266 55871 323 55 371 5662
2008 128122 19551 50698 52741 158 46 401 4527
2009 123001 14120 49284 53505 150 49 70 5373
2010 129901 15070 50684 56705 201 35 80 5697
Table 4
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Tariffs and Flights Proposed by Competitors
Economy class
Table 5
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Business Class
Table 6
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Let`s review a schedule of flights en-route New-YorkBoryspil using AmadeusGDS
Table 7
Comparing the prices of airlines Aerosvit offers tariff, which is in fairly
low price category, which is more attractive to passengers who travel on this route
New-York Boryspil. We see that the only company Aerosvit provides direct
flights, while other airlines are doing transplants in Europe, the passengers take
precious time. But the airline Aerosvit no flights on Mondays, and we will correct
it.
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Passenger Transportation Forecast
Scientific forecasting has many methods and techniques of forecasting: the
forecast trend, econometric relations and industrial surveys and market
conditions. The basis of forecasting the volume of passenger traffic should use an
integrated method based on systematic analysis of all interacting factors. At the same
time in this forecast should take into account the coordination of demand and the
possibility of its software. Economic and geographic research to enable the growth
trends in population, its movement and the need for change in the future in the region.
Consider the direction of the US-Ukraine.
Dynamic of Passengers Transportation Growth from US to UA
Diagram 4
Based on diagram 4, we see in terms of trend lines that will increase the
number of passengers annually. Most passengers arriving for tourism, business and
individual needs and business reasons. There is a considerable number of citizens
interested in direct flights to New York because this city home to many immigrants
from Ukraine. In addition, New York - the world's business center.
2010 was for New York to a record number of tourists visiting it. Procedure
10 million foreign and 30 million Americans have decided to look at the largest city
in the U.S.. Also, in New York often are different measures and actions that attracttourists worldwide. Analysis of statistical data on GDP and trade are making a
definite conclusion that the economic relations between developing countries and the
y = 29221x + 11069
R = 0,936
100000
105000
110000
115000
120000
125000
130000
135000
2006 2007 2008 2009 2010 2011 2012
Series1
Linear (Series1)
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trend observed in the future. Forecast of traffic on this route determines the increase
in the number of passengers who use the route. The route Kyiv - New York from
Ukrainian airline serves Aerosvit - Ukrainian Airlines ". Regular non-stop flights
between the capital of Ukraine and New York (USA) performed five times a week
medium-haul Boeing 767. From Kyiv airplane flying on Tuesdays, Thursdays,
Fridays, Saturdays and Sundays and from New York - on Tuesdays, Thursdays,
Fridays, Saturdays and Sundays. Aerosvit, the largest Ukrainian airline, serves 31
international and 7 domestic air routes. With nonstop flights of foreign airlines do not
do anything. All they do on Kyiv - New York with one or two stops (usually the
Amsterdam, Frankfurt, Zurich, Paris, London). After analyzing traffic flow data in
the country, shows that in 2011 it observed about 125 thousand passengers, in 2012.150000. In 2013. - 185 thousand passengers.
For this route Kyiv-New York, given that there are 5 flights per week on
Boeing 767 (the number of passengers in mixed class cabins - 211). Given that the
payload is equal to 100%, then a week receive 725 passengers carried, in the year
(multiplied by 52 weeks) - 37 700 passengers. The difference between the passengers
carried in 2009 and 2011 will make predictable 10 474 passengers per year. If we
divide the 52 weeks we will get an average of 250 people.
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Legal Side
In the field of European integration for Ukraine is an important support from
international partners who have extensive experience in strengthening and developing
democratic institutions and building a market economy. Particular attention in this
regard deserves assistance granted to Ukraine during the reporting term strategic
partners - the U.S. and Europe. There were historic strengthening of strategic
partnership between Ukraine and the USA. Its basis is today the agreement will be
recorded in the Joint Statement "of the new century agenda for Ukrainian-American
strategic partnership" adopted by the presidents of Ukraine and the United States 4
April 2005 in the course of the visit of President of Ukraine Victor Yushchenko to the
USA. Now this statement made by 90%. Among the major achievements of the
Ukrainian-American partnership for the period then ended, entails the following:
granting Ukraine the status of the U.S. Government market economy;
sign a bilateral protocol between Ukraine and the United States on the
conditions of market access for goods and services in preparation for our state to join
the World Trade Organization;
cancellation of Ukraine on the Jackson-Vanik;
lifting trade sanctions against Ukraine and the resumption of benefits under
the Generalized System of Preferences trade in the U.S.;
revitalization of the simplification of visa regime for citizens of Ukraine to
increasing contacts between citizens of both countries.
Jackson-Vanik Rectification
In October 2004, restrictions were introduced in the development of flights
between Ukraine and the USA. Sanctions against our country was initiated by U.S.
Federal Aviation Administration ( FAA) for the audit of the State. FAA then decided
that Ukraine "does not comply with international safety standards set by International
Civil Aviation Organization (ICAO) a number of criteria". As a result, our country
FAA safety rating was lowered from the first category to another.
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International Agreements
International air transportation regulate several multilateral
agreements. Among them are Chicago Convention on International Civil Aviation of
7 December 1944., Ratified by Ukraine on August 10, 1992 and for its effect from 9
September 1992 p. It was a compromise agreement between the states that
participated in its preparation. Standards of the Chicago Convention Protocol
complements the introduction of new 83-rd article of the Convention on International
Civil Aviation, ratified by Ukraine on February 15, 1995.
The Convention is the basis for national standards. Having established the
principle of recognition of state sovereignty, the Convention reaffirmed this right of
each State to regulate air traffic within its territory, the business of motor transport
enterprises and exercise jurisdiction over the traffic. The Chicago Convention sets
general requirements of civil aviation in international flights. It is about principles
and rules of flight, aircraft registration and documentation, investigation of air
accidents, the procedure for establishing technical standards.
Effective regulation of air transportation made possible by the activities ofinternational organizations. One of the first established international air transport
association (1919). In the early 40's to her were the largest U.S. and European
airlines. In 1945 this association was reorganized and adopted its new Constitution. It
brought together the leading airlines in Europe, USA, Asia and Australia. Association
should promote safe, regular and economically beneficial for States flights. To this
end, it was adopted only provided transport (1927), the form of tickets and baggagereceipts, bills of lading (1929), conditions of carriage of passengers and baggage
(1954) and others.
Creation in 1944 p. intergovernmental specialized agencies - the International
Civil Aviation Organization (ICAO), which started operations in 1947 p., led to joint
efforts to resolve the airlift of more than 160 countries. According to Art. 1944
Chicago Convention and the Charter Organization ICAO promotes the development
of international civil aviation, developing guidelines and standards for traffic rules,
maintenance of aircraft, promotes safety on international air routes.
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The main international agreement that defines the conditions of air transport
passengers and cargo, is the Convention for the Unification of Certain Rules Relating
to International Carriage by Air signed at Warsaw October 12, 1929 (Warsaw
Convention 1929).. Ratified by Ukraine on August 14, 1959 it came into force for it
on November 14, 1959 Warsaw Convention 1929 supplemented and modified signed
September 28, 1955 Hague Protocol of Amendment to the Convention for the
Unification of Certain Rules Relating to International Carriage by Air signed in
Warsaw on 12 October. Hague Protocol became effective for Ukraine 19/10/1960
Warsaw Convention 1929 complements the so-called Guadalajara Convention, in
addition to the Warsaw Convention for the Unification of Certain Rules Relating to
International Carriage by Air performed by a person who is not a carrier under thecontract. Ukraine signed the September 18, 1961 ratified September 5, 1983, and on
January 15, 1984 it has become effective for Ukraine. Supplementing the Convention
and Protocol of Guatemalan March 8, 1971. This protocol was an act aimed at
improving air carrier liability to passengers. Rome Convention on Damage Caused,
Foreign Aircraft to Third Parties on the Surface of 7 October 1952, to which, among
other countries was the Soviet Union from 1982.
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Schedule Construction
The route Kyiv - New York from Ukrainian airline serves Aerosvit. Regular
non-stop flights between the capital of Ukraine and New York (USA) performed five
times a week medium-haul Boeing 767. From New York AC fly on Tuesdays,
Thursdays, Fridays, Saturdays and Sundays, from Kyiv, in those days. Slots are place
in the timetable, schedule of take-offs-landing at the airports of departure and
destination. Regulatory allocation of slots for most of the national distribution
systems, recommendations were IATA. These rules are formulated in Worldwide
Scheduling Guidelines. There is a considerable number of citizens interested in direct
flights to New York because this city home to many immigrants from Ukraine. In
addition, New York - the world's business center. For this reason, I believe that to
create another plane for people who fly in for the most part (the beginning of the
business week). And anyway, in my opinion, departing early in the week better than
the middle of it.
These regular nonstop flights between Kyiv and New York will be operated
once a week medium-haul Boeing 767-400ER.
Flights from KBP to JFK
Flight Departure Destination Take-off Landing Flight days A/C type
VV424 KBP JFK 06:00 15:00 Mon 767-400ER
Table8
Flight from JFK to KBP
Flight Departure Destination Take-off Landing Flight days A/C type
VV424 JFK KBP 00:10 09:10 Mon 767-400ER
Table 9
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Aircraft Choosing
Choosing of A/C is a very important and difficult task that can be performed on
different reasons. For development of a new flight we choose Boeing 767-400ER.
Let`s compare technical and economical indices of an aircraft. We willcompare Boeing 767, Boeing 767-300ER, Boeing 767-400ER, Boeing 777-200,
Boeing 777-300.
A/C Technical Characteristics
1. Boeing 767 (price 27-80 m $, depending on the year of production)
Table 10
2. Boeing 767-300 ER (price 47-107 m $, depending on the year of production)
Table 11
3. Boeing 767-400ER (price 108-136 m $, depending on the year of production)
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Table 12
4. Boeing 777-200 (price 128-146 m $, depending on the year of production)
Table 13
5. Boeing 777-300 (price 151-170 m $, depending on the year of production)
Table 14
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Flight Cost Price Calculation
(variants: loan or lease)
Data for calculation of A/C taking in loan or lease
Price of new A/C125 m. USD (Boeing 767-400ER) and 75 m. USD (Boeing 767-300ER)
A number of paying quarters for a period of 5 years
Loan percentage rate13%
VAT20%
Average year loan rate - 15%
Depreciation10%
Credit
Calculation of loan suppose an every month payments for percentage of
loan .
Amount of the next payment is:
V = pV/n,
where pVprior amount of loan
nnumber of years
Amount of the next payment in percentage is:
I = pV*rate,
where rateyear percentage rate.
Composition of annual credit paying off table
# of paymentDebt on credit, m.
USDPercentage payment
Credit payment,
m.USD
Total payment, m. USD
1 125 16,25 2541,25
2 100 13,00 2538
3 75 9,75 2534,75
4 50 6,5 2531,5
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5 25 3,25 2528,25
Total: 48,75 125173,75
Table 15
The calculation of per cents for credit on purchasing of Boeing 767-400ER
the amount of USD 173,75 millions will be spend.
paymentDebt on credit, m.
USDPercentage payment
Credit payment,
m.USD
Total payment, m. USD
1 75 9,75 1524,75
2 60 7,8 1522,8
3 45 5,85 1520,85
4 30 3,9 1518,9
5 15 1,95 1516,95
: 29,25 75104,25
Table 16
Leasing of aircraft
. Coordination of the method of calculating the lease payment, you can: -
Financial leasing with full amortization; operational leasing.
Calculate the lease payment on a financial lease with full depreciation.
Calculation of the total lease payments made by the formula:
LP = DC + PC + CL + VAT,
where DC - depreciation;
PC - a charge for using credit;
CL - commission lessor;
VAT - Value Added Tax.
Calculation of the Average Annual Cost for Aircraft Boeing 767-
400ER
Period
Price of A/C on the
year beginning m.
USD
Depreciation, m.
USD
A/C cost in the
year end
Year average price
of A/C, m. USD
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1 125,0 12,5 112,5 118,75
2 112,5 12,5 100,0 106,25
3 100,0 12,5 87,5 93,75
4 87,5 12,5 75,081,25
5 75,0 12,5 62,5 68,75
Table 17
Calculation of the Total Lease Payments
1st
year
DC = 125 *10% = 12,5
PC = 118,75*0,13 = 15,44
CL = 118,75*0,15 = 17,81
E = DC + PC + CL = 12,5+15,44+17,81 = 45,75;
Where E are earnings from lease.
VAT = E*0,2 = 45,75*0,2 = 9,15
LP 1= 45,75 + 9,15 = 54,9.
2nd year
PC = 106,25*0,13 = 13,81
CL = 106,25*0,15 = 15,94
E = 12,5+13,81+15,94 = 42,25
LP2 = 42,25 +20% = 50,7
3rd
year
PC = 93,75*0,13 = 12,19CL = 93,75*0,15 = 14,06
E = 12,5+12,19+14,06 = 38,75
LP3 = 38,75+20% = 46,5
4th
year
PC = 81,25*0,13 = 10,56
CL = 81,25*0,15 = 12,19E = 12,5+10,56+12,19 = 35,25
LP 4 = 35,25+20% = 42,3
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5th
year
PC = 68,75*0,13 = 8,94
CL = 68,75*0,15 = 10,31
E = 12,5+8,94+10,31 = 31,75
LP 5 = 31,75+20% = 38,1
LP = LP 1+ LP 2+ LP 3+ LP 4+ LP 5, so
LP = 54,9+50,7+46,5+42,3+38,1 = 232,5 (m. USD).
After calculation performance it`s became clear that credit will cost USD
173.75 millions and lease will cost USD 232.5 millions. Hence, it is cheaper to take a
credit, rather than to lease an aircraft.
Calculation of the Average Annual Cost for Aircraft Boeing 767-300ER
Period
Price of A/C on the
year beginning m.
USD
Depreciation, m.
USD
A/C cost in the
year end
Year average price
of A/C, m. USD
1 75,0 7,5 67,5 71,25
2 67,5 7,5 60,0 63,75
3 60,0 7,5 52,5 56,25
4 52,5 7,5 45,0 48,75
5 45,0 7,5 37,5 41,25
Table 18
Calculation of the Total Lease Payments
1st year
DC = 75 *10% = 7,5
PC = 71,25*0,13 = 9,26
CL = 71,25*0,15 = 10,69
E = DC + PC + CL = 7,5+9,26+10,69 = 27,44;
Where E are earnings from lease.
VAT = *0,2 = 27,44*0,2 = 5,48
LP1= 27,44 + 5,48 = 32,9.
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2nd
year
PC = 63,75*0,13 = 8,28
CL = 63,75*0,15 = 9,56
E = 7,5+8,28+9,56 = 25,3
LP2 = 25,3 +20% = 30,4
3rd
year
PC = 56,25*0,13 = 7,31
CL = 56,25*0,15 = 8,44
E = 7,5+7,31+8,44 = 23,25
LP3 = 23,25+20% = 27,9
4
th
yearPC = 48,75*0,13 = 6,34
CL = 48,75*0,15 = 7,31
E = 7,5+6,34+7,31 = 21,2
LP4 = 21,2+20% = 25,4
5th
year
PC = 41,25*0,13 = 5,36
CL = 41,25*0,15 = 6,19
E = 7,5+5,36+6,19 = 19,05
LP 5 = 19,05+20% = 22,9
LP = LP 1+ LP 2+ LP 3+ LP 4+ LP 5, so
LP = 32,9+30,4+27,9+25,4+22,9 = 139,46 (m. USD).
After calculation performance it`s became clear that credit will cost USD
104.25 millions and lease will cost USD 139.46 millions. Hence, it is cheaper to take
a credit, rather than to lease an aircraft.
Calculation of direct fixed costs for flight Kyiv - New York includes the
following components:
Calculation of airlines cost for operating aircraft. Determination of operating
costs fleet is one of the most important tasks in cost calculations.
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restoration of basic production funds (BPF) BPF repair costs, contributions to
government social insurance, taxes, costs for energy and other items costing.
Cost of flight hours of aircraft Boeing 767-400ER and Boeing 767-300ER
depends on the conditions of commercial contracts with suppliers and therefore
cannot be reliably determined during the preliminary investigation. Is subject to the
global average lease prices, this figure will be about 9500USD for the Boeing 767-
400ER and Boeing 767-300ER.At international airlift aircraft should have available
the following types of insurance needed:
insurance airplane,
insurance of the crew, including flight attendants,
insurance of damage caused to third parties on the surface,
insurance of damage caused to passengers.
Costs for the refueling aircraft fuel (KBP). The cost of aviation fuel is one of the
main items of expenditure. Fuel consumption depends on the height of flight take-off
weight, duration of maneuvering after takeoff and before landing, the duration of the
engines on land as well as the optimal shutter speeds on the stages of flight. In
addition, through a special value that gets deleted fuel at high fuel prices on the world
market, special attention should be given to calculate the most economical refueling
aircraft on the route. The cost of aviation fuel in the various suppliers are not
equal. Yes, you can roughly say that the cost of one ton of kerosene is 700USD.
1. Fuel Costs for F&L. Complete filling the whole range of non-stop route use
for flight route Kyiv - New York. In this case, fuel costs are determined by the
formula:
fuel= [(Qland+ Qtake-off-landing).P+ qh
.flight
.P]
.Kl
fuel= (4,5*700+4,3*9*700)*7= USD 211680,
(1)
Where fuel(-jfk) costs on F&L en-route KBP-JFK
Qlandland fuel consumption
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Qtake-off-landing fuel for landings, take-offs etc.
qhfuel consumption per hour t/ h
flighttime of flight KBP-JFK;
Pfuel price USD;
Klcoefficient which takes into account price of lubricants.
Sum ofQland Qtake-off-landing is 4,5 tons for Boeing 767-400ER and Boeing
767-300ER. Data on qh: 4,3 t/h - Boeing 767-400ER, . Price of lubricants is equal to
1 % of fuel according to flight.
2. Cost on Labor Remuneration
W crew=(Hour-paid wage.* / Hours flown+h*)Ncrew. (2.1)
W crew =(2500*9 /72+200*9)*2=4225 USD
where W crewcrew wage,
flight time,
h -crew rate by hour
Ncrewnumber of crew.
W f.a.=( Hour-paid wage * / Hours flown+h*)Nf.a. (2.2)
W f.a. =(100*9 / 72+20*9)10=1925 USD)
Where W f.a.flight attendance wage
- flight time,
h -flight attendance rate by hour
Nf.a.number of flight attendance.
3. Other Direct Costs
Cost of A/C overhaul ( ):
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100flTyear
AcNd= 9
100585
.1251,0
usd1917 for(Boeing 767-400ER) (3.1)
9100585
751,0
m = 128,2 for (Boeing 767-300ER) (3.2)
Nddepreciation norm-10%
AcA/C price .,
Tyear flnumber of year flights h.
Costs for Technical Maintenance (M):usd 5,670935,01917Kt.m for Boeing 767-400ER (3.3)
usd 83,403935,02,128Kt.m for Boeing 767-400ER (3.4)
Kt.m.coefficient which takes into account costs on tech. maintenance and overhaul-
35%
Costs for Social Needs:Cs.n.= W*Kd=4225*42%+1925*33,2+6150* 0,096%=2419,5 USD (3.5)
were Kd deduction on social needs :
o For flight attendance 33,2%o For crew42%o Deduction on accidences and diseases ( class of dangerous 190,096%)
4. Airport Charges
KBP. Airport taxes set of recommendations offered by ICAO. Specially not less each
state or airport can make their own features to the rules of calculating the user
charges. Rates and fees from the airport operators KBP established order number 459
of the Ministry of Transport of Ukraine on 12.29.1997.
Take-offLanding Charge:Ct.l.= Ca/p
.Gmax
Ct.l.=11*204,12=2245,32 USD for Boeing 767-400ER (4.1)
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Ct.l.=11*184,6=2030,6 USD Boeing 767-300ER (4.2)
Where Ct.l. is Airport Boryspil Charge for landings and take-offsUSD;
Ca/p- rate of charge according to MTOW = 11 USD in KBP
Gmax - MTOW
Land Service charge Cl= 540USD. Costs on Crew Meals:Cmealcrew=Ncrew Smealcrew (4.3)
Cmealcrew =12*20=240 USD
where Cmealcrew costs on crew meals in KBP USD;
Ncrewnumber of crew
Smealcrewmeal price USD 20
Lease of one check-in desk = USD 100, and USD 10 for press.
JFK Take-offLanding Charge:
Ct.l.= Ca/p.Gmax
Ct.l.=15*204,12=3061,8USD for Boeing 767-400ER (4.4)
Ct.l.=15*184,6=2769 USDBoeing 767-300ER (4.5)
Ca/p=15 for each ton of MTOW
Tax for F&L Burning (Cf&l) fixed charge 150USD. Aviation security (Csec)charge is 150 USD.
Costs on Crew Meals:Cmealcrew=Ncrew Smealcrew (4.3)
Cmealcrew =12*35=420 USD
where Cmealcrew costs on crew meals in JFK USD;
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Ncrewnumber of crew
Smealcrewmeal price USD 35
Cost for press USD 10.
Territory overfly charge.
50
GbTDR ;
100
.7525D ;
50
GbTDR
50
12025,75*35 =4080USD for Boeing 767-400ER (4.7)
50
GbTDR =35* 75,25
50
94=3611 USD for Boeing 767-300ER (4.8)
unique charge for service on every 100 km of orthodromic distance ( 35 USD)Dorthodromic distance
GbMTOW
1. 5. Costs on Crew Dispatching.Cdisp=Ncrew
.Ndays
.Cday + Ncrew
.Ndays
.Cday2 (5)
Cdisp = 12*1*43+12*1*35=936 (USD).
2. Cdispcosts on crew dispatching USD;3. Ncrewcrew number;4. Ndays-number of dispatching days;5. Cday1daily dispatching money ;6. Cday2 - daily living price in hotel per one person35USD.7. Transportation costs of crew are 120 USD.6. Obligatory Aviation InsuranceAins=(Iac+Icrew+TPLL+PLL)*/Tyearflight (6)
Ains.=(24000+100000*2%+10000000*1%+100000*1%)/585=260 USD
Ainsobligatory aviation insurance
Icrewcrew insurance is 2 % from 100000 USD in USA,
TPLLthird parties legal liabilities
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PLLpassengers legal liability
7. Variable Costs Calculation
Variable Costs in KBP Charge for Passengers Serving in Air TerminalCserv = Npass
.Cterminal
Cserv =250*13 = 3250 USD
Cserv=charge for passengers ssevice
Cterminal=charge per one passenger
(7.1)
Aviation SecurityCsec= Npass
.Csec
Csec = 250 * 4 = 1000 USD
(7.2)
Csecaviation security charge
Csec = rate of charge
Passegers meals cost on boardCpassmeal = NpassY
.CmealY+ Npass
.CmealC
Cpassmeal = 375*10 + 59*15=4635 USD for Boeing 767-400ER
(7.3)
Cpassmeal = 290*10 + 70*15=3950 USD for Boeing 767-400ER
(7.4)
NpassY economy class passengers(375);
CmealYprice of economy meal 10USD;
Npassbusiness passengers (59)
CmealCprice of business meal 15USD.
Charge for Passengers Serving in Air Terminal JFK
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Cserv = Npass. Cterminal (7.5)
Cserv =(250+250)*15=7500USD
Passegers meals cost on board
Cpassmeal = NpassY. CmealY+ Npass
. CmealC
Cpassmeal =375*9+59*15= 4260 USD for Boeing 767-400ER
(7.6)
Cpassmeal =290*9+70*15= 3660 USD for Boeing 767-300ER
(7.7)
Calculation of variable costs for airlines is depending on the commercial load on the
tracks. Accounting or variable costs should lead promptly to each particular flight
charges of resuming them.
Direct Constant-Conditional Costs
CC=236779,12 USD for Boeing 767-400ER (8.1)
CC=232137,13 USD for Boeing 767-300ER (8.2)
Variable Costs
VC = 20645 USD for Boeing 767-400ER (9.1)
VC=19360 USD for Boeing 767-300ER (9.2)
Seat Price Cost
SPC = (CC + VC)/2*Npass
SPC =(236779,12+20645)/(2*375)= 343USD for Boeing 767-400ER economy class
(10.1)
SPC =(236779,12+20645)/(2* 59)=2181 USD for Boeing 767-400ER business class
(10.2)
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SPC=(232137,13+19360)/(2*290)=403,6USD for Boeing 767-300ER economy class
(10.3)
=(232137,13+19360) /(2*70)=1796,4 USD for Boeing 767-300ER business class(10.4)
As for the additional flight we purchased the airplane in credit, we have to
consider it in the ticket:
First, calculate for the Boeing 767-400ER:If a loan of 173.75 million USD, then
divide the period of 5 years, it will reach 34.7 million USD for 1 year. The number of
flights equals 104, so on one flight be broken in the amount of 59 315 USD. Then, if
we fly economy class, then divided by 375 seats, will get 159 USD, and when the
business class, then divide by 59 seats respectively, and receive 1005 USD. So add
the cost of one place and get:
economy class 343+159=502 USD
business class 2181+1005 = 3186 USD
Now calculate for the Boeing 767-300ER:
If a loan of 104.25 million USD, then divides the period of 5 years, it will be
20.85 million USD for 1 year. The number of flights equals 104, so on one flight be
broken in the amount of 36 260 USD. Then, if we fly economy class, then divide by
290 seats, will get 125 USD, and when the business class, then divide by 70 seatsrespectively, and receive 518 USD. So add the cost of one place and get:
economy class 403,6 +125 = 528,6 USD
business class 1796,4 +518 = 2314,4 USD
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Tariff policy
Tariff policy is quite important for the transport sector, since it depends on
income and development. But it should not be interconnected with the improvement
of services provided to citizens. In the field of tariff policy provides: provide free
transport pricing in the market sectors with a high level of competition; to monitor
actual costs and profitability of transport companies - monopolies; to establish, if
necessary fixed rates for transportation services of natural monopolies, coordinating
activities with other tariff regulation stimulating and restrictive measures; delimit the
powers of tariff regulation between state and regional levels of the transport system;
ensure the improvement of tariff policy and maintain a single tariff area in
accordance with intergovernmental agreements on a concerted policy to determine
transport rates.
Main improvement of the tariffs should be their differentiation by class
differentiation quality of transportation and other forms of transport in young men,
consistent end the practice of "transitional" funding and subsidies to loss-making
business through cost-effective. Reform of the tariff policy requires improvement of
tax legislation. To calculate the cost of the flight, we should add to the cost rate of
return. We receive a percentage of profitability by 20%. Then the fare for passengers
on flight Kyiv - New York be for Boeing 767-400ER.
For economy class USD 602
Business Class 3823 USD.
Boeing 767-300ER
For economy class 634,2 USD
For business-class 2776,8 USD. Since this plane was designed primarily for
business travel, then select the aircraft Boeing 767-300ER, where the cost of business
class is smaller than if we carry on the Boeing 767-400ER. While using aircraft
Boeing 767-300ER for economy class will go to $ 30 overpayment.
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Conclusion
After reviewing all the data we conclude that the aircraft industry is developing,
despite the global crisis. While incurred significant losses, many economic indicators
fell sharply down, the market begins to airlift out of the crisis and continues to
develop. We observe very high rates of turnover, passenger turnover between the
countries. In this case I had researched the market for air transport route - Ukraine
USA. By making analysis and forecast for this area, they saw a clear tendency to
increase economic relations. After reviewing all the indicators, I decided that it
should open a new flight from Kyiv - New York, because in this city live. Also, in
New York often are different measures and actions that attract tourists
worldwide. This year also occurred action designed to promote certain areas of New
York.
Another reason for choosing this direction is that all airlines except Aerosvit the
transport along the route with stops only in some cases even two. A lot of people
interested in non-stop flights. But in Aerosvit no flights on Mondays, and this is the
beginning of a new week. In order to develop new flight route found that the
purchase of new aircraft, according to calculations concluded that the better buy
Boeing 767-300ER. Computing the cost of leasing and credit, concluded that more
profitable to purchase aircraft loans, because if us take on lease, the overpayment is
almost doubled. For loans to 104.25 million USD will cost airlines, and taking on
lease - 232.5 million USD. Having developed a new flight, calculate the tariff which
will be for economy class passengers 602 USD, business-class 3823 USD. This is
somewhat less than competing airlines.
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References
1. : / .. . .:, 2008. 124 .
2. .. : . .: "" : . ., 2007. - 462 .
3. www.aerosvit.com4. www.ukrstat.gov.ua5. uastocks.com/macro6. www.america.gov/ru7. http://www.ukraviatrans.gov.ua8. www.airwar.ru9. www.newyork-info.ru10. www.mintrans.gov.ua11. http://www.airticketua.com/direction/kiev_new_york12. http://www.ereport.ru/stat.php13. http://www.forumavia.ru/14.
153 18.02.2006.
15. 459 29.12.97 .
http://www.aerosvit.com/http://www.aerosvit.com/http://www.ukrstat.gov.ua/http://www.airwar.ru/http://www.airwar.ru/http://www.mintrans.gov.ua/http://www.mintrans.gov.ua/http://www.airticketua.com/direction/kiev_new_yorkhttp://www.airticketua.com/direction/kiev_new_yorkhttp://www.ereport.ru/stat.phphttp://www.ereport.ru/stat.phphttp://www.forumavia.ru/http://www.forumavia.ru/http://www.forumavia.ru/http://www.ereport.ru/stat.phphttp://www.airticketua.com/direction/kiev_new_yorkhttp://www.mintrans.gov.ua/http://www.airwar.ru/http://www.ukrstat.gov.ua/http://www.aerosvit.com/