Outcome 3       Describe the cost and revenue structure of an Airline

Task 3:  Individual Report                                                                    (15 marks)

 Submission Date – April 25th, 2016


For this task you are required to identify the factors that contribute to the cost of an Airline and describe the different sources of revenue for an airline.

You can answer this by choosing a Full Service carrier of your choice and investigating their latest annual report.  You need to analyze the costs and revenues for the latest financial year for which data is available and comment on the same. For your analysis you can refer to the costs based on the ICAO Airline cost categorization (image attached below for reference) and prepare a pie chart showing the percentage of each cost. You need to do the same for revenues as well, and finally conclude with your findings.

This is an individual assignment, however two students can choose the same airline provided they analyze the costs and revenues for different financial years. The assignment is to be submitted online through the Turnitin Link on Moodle. The link will be open until 17:00 hrs on April 25th, 2016.

Structure of the Report:

  1. Cover Page
  2. Table of Contents
  3. Introduction to the Airline
  4. Direct Operating Costs (pie chart & its analysis)
  5. Indirect Operating Cost (pie chart & its analysis)
  6. Revenues (pie chart & its analysis)
  7. Conclusion

Marks awarded as follows: Cost structure 6 marks. Revenue Structure 6 marks (1500 words maximum), Conclusion – 3 marks.

ICAO Airline Cost Categorization


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