Assessing the Influence of the Scale of Operations on Maintenance Costs in the Airline Industry

Diego Javier Gonzales Vega
Daniel Alberto Pamplona
Alessandro V. M. Oliveira

Instituto Tecnológico de Aeronáutica (ITA), Departamento de Transporte Aéreo

Event: XIII SITRAER – São Paulo, SP, Brasil, November 17–19, 2014
Volume: Anais do XIII Simpósio de Transporte Aéreo (SITRAER): desafios em transporte aéreo e avaliação do transporte aéreo durante a Copa do Mundo FIFA 2014
Pages: 211–217
Publisher: Escola Politécnica da Universidade de São Paulo (EPUSP)
Editors: João Batista Camargo Júnior

Abstract

The aim of this study is to investigate whether the size of airline operations has any statistically significant effect on the costs of its aircraft maintenance. By investigating the impact of the extent of operations on unit costs of carriers, it was inspected the existence of economies of scale in providing maintenance services. Through an econometric model of maintenance costs, it was estimated the influence of key drivers such as the aircraft average stage length, aircraft size and load factors. It was performed an application to the Brazilian airline industry. The empirical model makes use of a Fixed-Effects Estimator (FE), using a four-dimensional panel data of flight segments, carriers and equipment over a period of ten years. Results showed support for the hypothesis of scale economies in maintenance services.

Keywords: Maintenance; Econometric; Airline Operations; Costs; Economies of Scale

How to cite

ABNT

VEGA, Diego Javier Gonzales; PAMPLONA, Daniel Alberto; OLIVEIRA, Alessandro V. M. Assessing the Influence of the Scale of Operations on Maintenance Costs in the Airline Industry. In: SIMPÓSIO DE TRANSPORTE AÉREO, 13., 2014, São Paulo. Anais [...]. São Paulo: EPUSP, 2014. p. 211-217. Disponível em: https://sitraer-sbta.org/anais-2014-p211.html.

APA

Vega, D. J. G., Pamplona, D. A., & Oliveira, A. V. M. (2014). Assessing the Influence of the Scale of Operations on Maintenance Costs in the Airline Industry. In J. B. Camargo Júnior (Eds.), Anais do XIII Simpósio de Transporte Aéreo (SITRAER): desafios em transporte aéreo e avaliação do transporte aéreo durante a Copa do Mundo FIFA 2014 (pp. 211–217). EPUSP. https://sitraer-sbta.org/anais-2014-p211.html

BibTeX

@inproceedings{vega2014assessing,
  author = {Vega, Diego Javier Gonzales and Pamplona, Daniel Alberto and Oliveira, Alessandro V. M.},
  title = {{Assessing the Influence of the Scale of Operations on Maintenance Costs in the Airline Industry}},
  booktitle = {Anais do XIII Simpósio de Transporte Aéreo (SITRAER): desafios em transporte aéreo e avaliação do transporte aéreo durante a Copa do Mundo FIFA 2014},
  editor = {Camargo Júnior, João Batista},
  pages = {211--217},
  year = {2014},
  address = {São Paulo, SP, Brasil},
  publisher = {Escola Politécnica da Universidade de São Paulo (EPUSP)},
  url = {https://sitraer-sbta.org/anais-2014-p211.html}
}