Abstract
This paper analyzes the main factors that affect the strategies to reduce airlines costs. These costs factors were presented to experts from the airline industry through two rounds of questionnaires in sense to be weighed. It was applied a method based on the structure of the AHP (Analytic Hierarchy Process) and the results show that the main important factors for a cost-related airlines strategy are, in importance: route structure and mesh; type and characteristics of the aircraft; cost of labor and management quality. This hierarchy can help the decision maker when facing the need of defining priorities in reduction costs. past decades despite the increase in air transportation and significant decrease in average operation costs, it is observed that airlines have low profitability. The liberalization of the markets and increase opportunities for competition diminishes prices, even when airlines face increasing costs. Considering that advantage in costs is an important strategy for carriers to remain in the market, this paper analyzes the main factors that affect the strategies to reduce airlines costs. These costs factors were presented to experts from the airline industry through two rounds of questionnaires in sense to be weighed. It was applied a method based on the structure of the AHP (Analytic Hierarchy Process) and the results show that the main important factors for a cost-related airlines strategy are, in order of importance: route structure and mesh; type and characteristics of the aircraft; cost of labor and management quality. This hierarchy can help the decision maker when facing the need of defining priorities in reduction costs.
Highlights
Over the past 50 years, civil aviation has grown dramatically
The proposal is to establish a hierarchy of these factors according to their importance. It could be relevant for helping the manager when facing decisions about measures of costs reduction and efficiency focusing their efforts and set priority actions. To reach this objective it was applied a structure based on the method of decision support AHP (Analytic Hierarchy Process), in which the weights of the factors were determined through questionnaires sent to experts in the field
The main objective of this research was to propose a ranking of the main factors in strategies to reduce cost of airlines
Summary
Over the past 50 years, civil aviation has grown dramatically. The rate of technological change has been outstanding resulting in a decrease in costs and prices, which stimulated a rapidly growing demand for their services (Doganis, 2010).Doganis (2010) highlights a paradox. Over the past 50 years, civil aviation has grown dramatically. The rate of technological change has been outstanding resulting in a decrease in costs and prices, which stimulated a rapidly growing demand for their services (Doganis, 2010). Most industries and businesses that have a continuous and rapid growth in demand for their products or services have a substantial increase in their profits. It does not happen with the airlines. These usually have a low profit, in general
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