FORECAST OF LOSSES INCURRED BY U.S. COMMERCIAL AIR CARRIERS DUE TO INABILITY TO DELIVER PASSENGERS TO DESTINATION AIRPORTS IN ALL-WEATHER CONDITIONS: 1959-1963
Abstract
The findings indicate that U.S. airlines incur losses of approximately $55 million a year due to flight disruptions in periods when weather conditions are below authorized limits. Due to increased traffic and increases in the costs of operating aircraft, these losses will increase to over $65 million by 1963. The growing proportion of jet aircraft in the carriers' fleets is one of the major factors accounting for the cost increases since costs of delay are far greater for jet aircraft than for piston aircraft because of the higher hourly operating expense of the former. The losses take the form of (1) cash losses when airlines are forced to cancel, delay or divert their schedules, (2) short and long term costs resulting from landing accidents, and (3) losses from reduction in the demand for air travel due to its present unreliability in bad-weather periods. The costs considered in this report were of an incremental and direct nature only. If flight depreciation expense and all indirect and overhead expense were allocated to the aircraft time consumed in delays, diversions and cancellations, the costs would have been considerably higher than those shown. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 1961
- Accession Number
- AD0264821