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Back to basics! Too many financial analysts are trying to reinvent the wheel in the aviation industry. The fact remains that it’s still just a matter of simple arithmetic. Let’s compare a CRJ 200 in this example: The Total operating cost of this RJ is approx. $2400.00 per hour. You can figure that the average ticket costs approx. $350.00 per person (call it a round trip). At our company the average CRJ flight is approx. 1.3 hr. Load factor most of the time is 23 or better. In this case (3120/175=17.8) the load to required to break even is 18 pax. With this in mind you can say that we are making money most of time for our big Mother!
BigPappa said:Those numbers are based on averages. I've done my research. You do yours and come back with smart answers after you've done your research. I've kept up with fares and loads for several months! That $2400 includes everything.
BigPappa said:You are taking the furthest legs. You need to average!