Originally Posted by
Sopwith
@
aerobod: Thanks for this, an interesting analysis. I assume the CASM includes all the overhead and not just direct costs of the flight.
Reminds me of the old maxim: the quickest way to become a millionaire is to start off as a billionaire and buy an airline. Why on earth (or in the skies) anyone would start up an airline these days is beyond me!
Yes CASM (Cost per Available Seat Mile) includes all operating costs, both fixed (for example aircraft leasing) and variable (such as employees salaries) and things such as landing fees, but not taxes and charges that are shown separately on a ticket such as Nav Canada fees or airport improvement fees. It is definitely a brutal business to be in!