Outlook for Air Transport to the Year 2015 - FILT CGIL Foggia

More documents

Recommendations

Info

Chapter 2. Air Transport Trends and Challenges 131 2001 000Index800600Labour productivity400Aircraft productivity200Fuel productivity01960 63 66 69 72 75 78 81 84 87 90 93 96 99 2002Source: ICAO, BACK Aviation Associates, IMF, OECD.Figure 2-7. Trends in airline productivity — World (1960–2002)RELATIONSHIP BETWEEN PRODUCTIVITY, PRICES ANDFINANCIAL PERFORMANCE21. Having estimated the improvement in productivity performance achieved by the airline industry, thequestions of how the improved productivity was used and who received the benefits can be addressed. Byreducing the quantities of inputs required to produce a unit of output, productivity growth has the effect ofreducing the cost per unit of output. These cost reductions may be used either to reduce real fares and rates paidby passengers and shippers or to provide airlines with improved financial results.22. Changes in the real prices paid for inputs (e.g. labour and fuel) purchased by the airlines are also reflectedin the cost per unit of output, and hence in real fares and rates or in financial performance. The price trends of twoof the most important inputs, labour and jet fuel, are indicated in Figure 2-8, which also shows the trend in theConsumer Price Index (CPI). International Monetary Fund (IMF) indices for industrial countries are used for thelabour price and the CPI. The importance of labour cost in the total cost structure of airlines and the high rate ofincrease in wage rates suggested in the figure have together acted as a powerful incentive for the improvement inlabour productivity observed in Figure 2-7. Fuel is another key item on the expense side of the accounts. Theimpact on expenses of the very large fuel price increases in 1973–74 and 1979–80 was partly reversed by theprice declines in 1985. Further hikes in jet fuel prices occurred in 1990, 1996 and most recently in the year 2000when the average annual price in U.S. dollars reached 85 cents per gallon. Due to a contraction in demand, the jetfuel price softened to 69 cents on average in 2002 easing the pressure on airline operating costs. During the 1990s,fuel and oil costs ranged from around 10 to 15 per cent of total operating costs of scheduled airlines.23. The trends in productivity, input prices, yields (i.e. fares and rates), and financial performance aresummarized in Figure 2-9. A log scale is used so that the slopes of the trend lines represent percentage changes.
14 Outlook for Air Transport to the Year 20151 2001 000Index80060040020001960 63 66 69 72 75 78 81 84 87 90 93 96 99 2002Source: IMF, OECD, Energy Information Administration of US Department of Energy.Figure 2-8. Input price trends — World (1960–2002)100ProductivityIndex (log scale)10Revenue/expenseReal input priceReal yield11960 63 66 69 72 75 78 81 84 87 90 93 96 99 2002Source: IMF, ICAO Reporting Forms A-1 and EF-1.Figure 2-9. Trends in airline industry performance — World (1960–2002)
Page 2: FOREWORDIntroduction1. This circula
Page 5 and 6: Table of Contents(v)Figure 4-3. Pas
Page 7 and 8: 2 Outlook for Air Transport to the
Page 17: 12 Outlook for Air Transport to the
Page 27 and 28: Chapter 3WORLD ECONOMIC ENVIRONMENT
Page 29 and 30: Chapter 4AIRLINE FINANCIAL TRENDSOP
Page 47 and 48: Chapter 6FORECASTS OF AIRCRAFT MOVE
Page 50: Chapter 6. Forecasts of Aircraft Mo
Page 55: 50 Outlook for Air Transport to the

Outlook for Air Transport to the Year 2015 - FILT CGIL Foggia

Create successful ePaper yourself

Delete template?

Save as template?