Airlines Operating Cost and Revenue: The Case of the Cameroon National Airline

Abstract

This paper attempts to provide a unique opportunity to calculate Cameroon domestic air transport operating cost and revenue. I explicitly introduce in my cost function the route distance of the domestic network in which carriers provide their services. Due to the declined in the domestic air transport routes in Cameroon, I proposed a hub-and-spoke network which influenced the operating revenue. My results, therefore, indicated that only two out of eleven routes are profitable. Consequently, to prevent huge shortfall in airlines revenues, I argued for the creation of the Domestic Network Sustainability Trust Fund.