IDEAS home Printed from https://ideas.repec.org/a/tpe/jtecpo/v37y2003i2p279-296.html
   My bibliography  Save this article

Cost Economics of Aircraft Size

Author

Listed:
  • Wenbin Wei
  • Mark Hansen

Abstract

The authors study the relationship between aircraft cost and size for large commercial passenger jets. Based on a translog model, they develop an econometric cost function for aircraft operating cost and find that economies of aircraft size and stage length exist at the sample mean of their data set, and that for any given stage length there is an optimal size, which increases with stage length. The scale properties of the cost function are changed considerably if pilot unit cost is treated as endogenous, since it is correlated with size. The cost-minimising aircraft size is therefore considerably smaller, particularly at short stage lengths, when pilot cost is treated as endogenous, and this helps to explain why US airlines expect to accommodate future traffic growth with more flights instead of larger planes. © The London School of Economics and the University of Bath 2003

Suggested Citation

  • 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.
    • Handle: RePEc:tpe:jtecpo:v:37:y:2003:i:2:p:279-296
    as

    Download full text from publisher

    File URL: http://www.catchword.com/cgi-bin/cgi?ini=bc&body=linker&reqidx=0022-5258(20030501)37:2L.279;1-
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:tpe:jtecpo:v:37:y:2003:i:2:p:279-296. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Christopher F. Baum (email available below). General contact details of provider: http://www.bath.ac.uk/e-journals/jtep .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.