I want to list the costs airlines have to sustain by distinguishing them between variable and fixed. Variable costs change in proportion to aircraft usage. Fixed costs show little or no change in proportion to changes in activity.
This is an incomplete list I took from the FAA website (here)
- Fuel and oil.
- Maintenance (e.g., maintenance labor, parts airframe/engine/avionics, engine restoration, thrust reverser overhaul, propeller Overhaul).
- In-ground and in-flight crew salaries (can also be thought as fixed costs).
- Parking and hangar fees.
- Aircraft modernisation.
- Computerised maintenance management program.
- Weather service.
(1) In which category should I put
Landing fees (ATC, runways, taxiways, parking at stand or apron for a certain time (e.g. 2 hours), use of gates / fingers / terminal for disembarking).
Surcharges or rebates in addition of landing fees (for noise, peak-hour operations)
Administrative cost (managing/issuing tickets, etc.)
(2) I'm fundamentally confused about the distinction between fixed and variable costs. For instance, landing fees increase with the number of flights and, hence, with the demand of tickets for a given route. Should they be classified as variable costs for this reason? Is this the same reason why fuel and oil, maintenance, and crew salaries are classified as variable costs?