Investopedia (2015) states, the two key expenditures of the airline industry are labor and fuel. Most labor rates account for nearly 35 percent of airline total operating cost. The operating cost covers approximately 75 percent of all non-fixed totals (p. 1). FAA (2013) documented cost are either direct or indirect, variable or fixed. Some of the expenditures fall into more than one category. Aircraft operating cost is a direct expense (p 4-3). Indirect operating expense encompass a variety of expense such as advertising, aircraft servicing, administrative fees, passenger services, traffic servicing, reservations, and sales (FAA, 2013, p. 4-3). Variable cost include fuel, oil, maintenance, and crew
Investopedia (2015) states, the two key expenditures of the airline industry are labor and fuel. Most labor rates account for nearly 35 percent of airline total operating cost. The operating cost covers approximately 75 percent of all non-fixed totals (p. 1). FAA (2013) documented cost are either direct or indirect, variable or fixed. Some of the expenditures fall into more than one category. Aircraft operating cost is a direct expense (p 4-3). Indirect operating expense encompass a variety of expense such as advertising, aircraft servicing, administrative fees, passenger services, traffic servicing, reservations, and sales (FAA, 2013, p. 4-3). Variable cost include fuel, oil, maintenance, and crew