Direct operating Costs and pricing

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As consumers we are often unaware of the actual cost of producing the products/services we purchase. When taking a flight we generally only consider our own ticket cost, but the air carrier has multiple costs to constantly track and evaluate for each individual flight.


For this assignment please identify and explain three Direct Operating Costs (DOCs), and provide the following:

  1. Research your selected costs and provide a dollar amount for how much each one costs. This will require you to provide additional details on the distance of the flight as well as the aircraft being flown. Costs such as fuel will vary depending on the situation so be as specific as you can.
  2. Identify whether your selected costs are fixed or variable and explain what this means.
  3. Why do air carriers need to track all costs associated with their flights?

Please develop your own scenario. Feel free to use the information in the book and insight as a guide/source; however, do not use the B747-400 example in the insight. I want to see you develop your own scenario and find your own information (ex. crew rate, maintenance rate, fuel cost, etc.). In addition, please list the sources you used using APA format.


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