Wednesday, September 21, 2016

What would be the cost, on an hourly basis, of operating an Airbus A-380?










The cost of operating any aircraft depends on various factors. So determining the exact cost of operation is not possible. But by making use of the available data (from 2014), we can estimate the cost.
  • Fuel          Fuel costs around $1000 per metric ton. An A380 consumes fuel at a rate of 11 metric tonnes per hour. This means that the fuel cost per hour is $11,000.
  • Amortization          An A380 costs about $350 million. With an amortization period of 20 years, a residual value of $50 million and an interest rate of 5%, an airline would be paying $24 million per year. That is about $2740 per hour.
  • Airport charges          These charges vary extremely between airports. Even within an airport, costs are determined based on the takeoff weight of the aircraft, ground time, services requested, time of the day (peak hours or non peak hours), and various other factors. On the lower side, it would cost about $10,500 for a quick turn around and a low takeoff weight. Airport charges could go up to $25,000.
  • Overflight charges          To cover ATC costs, countries charge airlines when aircraft fly over their territory. This cost also varies greatly depending on the region, distance flown and various other factors. The fee for Europe is about €1300 per hour. This is $1436 at current conversion rates.
  • Crew          For a typical airline, the captain is paid $160,000 a year and the first officer is paid $90,000 a year. This translates to about $350 per hour. Adding another $80 for allowances, the flight deck crew costs $430 per hour. Cabin crew rates would be around $40 per hour and for a plane with a crew of 20, this is $800 per hour. I am ignoring hotel costs and other allowances for cabin crew . These charges could easily increase the amount.
Adding all the above costs, it turns out to be around $26,500 per hour on the cheaper side.

No comments:

Post a Comment