AIRLINE FUEL CONSUMPTION MANAGEMENT AND CONSERVATION

摘要

The purpose of the paper is to present a methodology for monitoring and evaluating the fuel consumption performance of an airline. The proposed methodology by relating fuel consumption to the aeronautic equation of fuel burn establishes the airline fuel consumption function and enables its econometric estimation. The airline fuel consumption equation is estimated from a pooled data set of twenty international airlines for the period 1965-1984. Two fuel consumption equations are specified. The first relates to fuel consumed per hour of service provided and the second relates to the airline network size as well as to the actual work that is performed. Airline fuel consumption is a relatively neglected research topic in airline economics. The paper contributes to the literature by specifying the airline fuel cost function, by estimating it and by directly relating it to the parameters which influence fuel consumption. By estimating an airline fuel consumption function, airline management can operate on airline fuel related issues and it can mitigate the associated environmental concerns.