Modelling Impact of Irregular Operations on Airline Fare Policies and Revenue Management Cover Image

Düzensiz Operasyonların Havayolu Ücret Politikalarına ve Gelir Yönetimine Etkisi Üzerine Modelleme
Modelling Impact of Irregular Operations on Airline Fare Policies and Revenue Management

Author(s): Ali Akbaba
Subject(s): Business Economy / Management, Socio-Economic Research, Transport / Logistics
Published by: İşletme Araştırmaları Dergisi
Keywords: Irregular Operations (Flights); Cost; Cost Structure; Revenue Management; Pricing;

Summary/Abstract: Purpose – The aim of this study can be stated as determining the cost items that occur in airline irregular flights and examining their effects on the airline cost structure. Thus, since the cost structure plays an important role in revenue management and pricing, it can be reported that the effects of irregular flights on revenue management and pricing can be determined. Design/methodology/approach – Research, as a result of irregular operations; In order to determine whether there has been a change in cost itemsunder the heading of delayed operations, canceled operations and diverting operations, it was conducted by interviewing the participants at the level of chief, manager or employee who worked in AOCC departments in Turkey. Then, the effect of these cost items, which are formed as a result of irregular flight operations, on the airline cost structure was revealed from the literature. Finally, by simulating a flight, the effect of irregular operations on fare policies and revenue management is revealed from the irregular operation data, which is assumed to be the past data of this flight. Findings – It can be reported that the increased cost items of the airlines generally affect the operational fixed cost structure in the cost structure of the airlines whenthe irregular operations are realized as a delayed flight, a canceled flight and a divert (a flightlanding at an aerodrome outside the destination airport due to a problem during the flight). And by using past data, it can be reported that a model can be created to calculate the effect of irregular operations on unit costs per flight. Discussion – Inaddition to the findings in the literature that irregular flight operations increase the costs of airlines and especially unit costs, in this study, it can be reported that a model has emerged on how to calculate unit costs and general costs of a flight line by determining the cost items and cost structure changes resulting from irregular flight operations. It can be stated that this model can be used both in the implementation studies to be done in the literature and by airlines that have data in hand in practice.

  • Issue Year: 14/2022
  • Issue No: 4
  • Page Range: 2833-2847
  • Page Count: 15
  • Language: Turkish