Agree - everything within reason.TheStig wrote:If a trip costs $10,000 to operate and is 1000nm and the aircraft has 200 seats. The CASM is 1000(nm)X200(seats)=200,000(ASM).
$10,000 / 200,000ASM = $0.05 CASM
The post above about CASM ruling all is FALSE. There are several other factors that factor in, namely RASM, or Revenue per ASM. A rouge A321 with 200 seats would have a lower CASM than a Jazz CRJ, but if you can only sell 50 seats once a day, that route would be better served by the RJ.
CASM isn't a fixed value for an aircraft either, flying a jet under 300nm isn't very cost effective and widebody jets only seem to come out ahead (on CASM) of narrow bodies beyond 2000-3000nm. Bigger is usually better, and smaller narrow bodies have become cost effective on longer thin, less competitive routes, or those that aren't overly price sensitive. For AC with the EMJ that translates to YYZ-SEA, YYZ-PDX, YYZ-YQR, YYZ-DEN, YYZ-YOW (where frequency is important).
While there may be thought that has been given to future staff shortages at the regionals, the main reason the Regional Replacement Aircraft is going to be implemented is because many regional routes have grown to the point where they would be more cost effectively served by a larger aircraft. For example, YYZ-BNA (Nashville) is now flown 3 times a day on RJ's, instead of adding a forth RJ per day, why not service the route using 3 A319's daily?
Fuel and crew costs are the obvious factors associated with a routes CASM, other factors include the cost of having a crew overnight and paid expenses versus starting at home base early and conducting a turn, the complexity of having multiple types service one route, the availability of gates has become an issue at YYZ and YUL, not to mention ATC costs, and landing fees.
PML between Express Carriers
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Re: PML between Express Carriers
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co-joe
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Re: PML between Express Carriers
CASM is a way of comparing two different aircraft on the same flight. Total cost times number of seats divided by statute miles flown give you cost per mile per seat. Adding more seats to an aircraft or buying a more efficient machine or upgrading components can give better CASM. So can cutting wages and benefits or when fuel goes down in price.
An airline's actual CASM is a closely guarded secret, but can be approximated based on adding up an airline's fixed costs.
Other important terms are RPM or revenue passenger miles. Miles flown with bums in seats.
ASM would be available seat miles, or seats you can sell times total miles.
RPM compared to ASM gives you load factor. Anything over 70% is considered good. Break even load factor is the the percent load that covers your costs only, anything over is profit.
Sorry for the thread drift. Now you can read Flight International Magazine and have a slight idea what they're talking about.
An airline's actual CASM is a closely guarded secret, but can be approximated based on adding up an airline's fixed costs.
Other important terms are RPM or revenue passenger miles. Miles flown with bums in seats.
ASM would be available seat miles, or seats you can sell times total miles.
RPM compared to ASM gives you load factor. Anything over 70% is considered good. Break even load factor is the the percent load that covers your costs only, anything over is profit.
Sorry for the thread drift. Now you can read Flight International Magazine and have a slight idea what they're talking about.
