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An assessment of economic costs of cargo transporting airlines by the use of a structural cost function

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  • Mayer, Markus
  • Scholz, Aaron B.

Abstract

This paper validates a disaggregated theoretical cost function for cargo services for one step of cost emergence, namely the flight level. Data was provided by the US Department of Transportation and a multinomial linear regression has been developed. Results allow comprehensive insights into the industry such as the major cost components of cargo airlines, their composition as well as discussions on the existence of economies of scale and density for cargo airlines.

Suggested Citation

  • Mayer, Markus & Scholz, Aaron B., 2012. "An assessment of economic costs of cargo transporting airlines by the use of a structural cost function," Journal of Air Transport Management, Elsevier, vol. 25(C), pages 30-32.
    • Handle: RePEc:eee:jaitra:v:25:y:2012:i:c:p:30-32
    DOI: 10.1016/j.jairtraman.2012.05.002
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    References listed on IDEAS

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    1. Wenbin Wei & Mark Hansen, 2003. "Cost Economics of Aircraft Size," Journal of Transport Economics and Policy, University of Bath, vol. 37(2), pages 279-296, May.
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    Cited by:

    1. Chao, Ching-Cheng & Li, Ru-Guo, 2017. "Effects of cargo types and load efficiency on airline cargo revenues," Journal of Air Transport Management, Elsevier, vol. 61(C), pages 26-33.
    2. Skorupski, Jacek & Wierzbińska, Magdalena, 2015. "A method to evaluate the time of waiting for a late passenger," Journal of Air Transport Management, Elsevier, vol. 47(C), pages 79-89.

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