[Methodology for determining change in operating expense per available seat-mile]
| Year ended September 1979 | Trunks | Locals | Trunks plus locals | Total passenger/cargo16 |
|---|---|---|---|---|
| Total operating expense1 (millions) | $16,455 | $2,522 | $18,977 | $19,384 |
| Less: | ||||
| All-cargo expenses2 | 269 | 269 | 269 | |
| Belly offset3 | 952 | 153 | 1,105 | 1,153 |
| Nonscheduled4 | 141 | 46 | 187 | 205 |
| Transport related5 | 379 | 31 | 410 | 416 |
| Plus: Capitalized lease adjustment10 | 119 | 2 | 121 | 121 |
| Passenger operating expense | 14,833 | 2,294 | 17,127 | 17,462 |
| Passenger fuel cost11 | 4,103 | N.A. | ||
| Scheduled service ASM's (mils.) | 281,671 | 33,051 | 314,722 | 318,459 |
| Passenger nonfuel operating expense per ASM (dollars) | .04138 | N.A. | ||
| Passenger fuel expense per ASM (dollars) | .01304 | N.A. | ||
| Total passenger expense per ASM (dollars) | .05442 | .05483 | ||
| Year ended September 1978 | ||||
| Total operating expense1 (millions) | 14,081 | 2,033 | 16,114 | 16,448 |
| Less: | ||||
| All-cargo expenses2 | 282 | 282 | 282 | |
| Belly offset3 | 869 | 152 | 1,021 | 1,065 |
| Nonscheduled4 | 193 | 53 | 246 | 256 |
| Transport related5 | 419 | 30 | 449 | 454 |
| Plus: Capitalized lease adjustment10 | 78 | 1 | 79 | 79 |
| Passenger operating expense | 12,396 | 1,799 | 14,195 | 14,470 |
| Passenger fuel cost11 | 3,129 | N.A. | ||
| Scheduled service ASM's (mils.) | 262,068 | 27,067 | 289,135 | 292,255 |
| Passenger nonfuel operating expense per ASM (dollars) | .03827 | N.A. | ||
| Passenger fuel expense per ASM (dollars) | .01082 | N.A. | ||
| Total passenger expense per ASM (dollars) | .04909 | .04951 | ||
| Percent change in nonfuel operating expense per ASM (percent) | 8.13 | N.A. | ||
| Projected change in nonfuel expense from April 1, 1979 to April 1, 19806 | 8.13 | N.A. | ||
| Estimated change in fuel cost, year ended September 1979 average to April 1, 198014 | 73.06 | N.A. | ||
| Nonfuel operating expense per ASM at April 1, 19807 (dollars) | .04474 | N.A. | ||
| Fuel expense per ASM at April 1, 19807 (dollars) | .02257 | N.A. | ||
| Total expense per ASM at April 1, 19807 (dollars) | .06731 | 15.06782 | ||
| Year ended March 1977 | ||||
| Total operating expense1 (millions) | $11,726 | $1,520 | $13,316 | $13,601 |
| Less: | ||||
| All-cargo expense2 | 238 | 238 | 238 | |
| Belly offset3 | 729 | 96 | 825 | 865 |
| Nonscheduled4 | 220 | 35 | 225 | 266 |
| Transport related5 | 427 | 111 | 538 | 554 |
| Passenger operating expense | 10,112 | 1,348 | 11,460 | 11,678 |
| Passenger fuel cost | 2,190 | 230 | 2,420 | N.A. |
| Scheduled service ASM's (mils.) | 239,593 | 23,428 | 263,021 | 265,837 |
| Operating expense per ASM (dollars) | .04221 | .05754 | .04357 | .04393 |
| Projected expense per ASM (dollars) as at July 1, 197713 | .04593 | |||
| Projected operating expense per ASM as at April 1, 1980 (page 1) (dollars) | .06782 | |||
| Ceiling adjustment factor8 (percent) | 47.66 | |||
| D.P.F.I. formula effective July 15, 197712: | |
| Terminal charge | $16.16 |
| Plus | .0884/mile (0-500 miles). |
| Plus | .0674/mile (501-1,500 miles). |
| Plus | .0648/mile (over 1,500 miles). |
| Ceiling formula through April 30, 19809: | |
| Terminal charge | $23.86 |
| Plus | .1305/mile (0-500 miles). |
| Plus | .0995/mile (501-1,500 miles). |
| Plus | .0957/mile (over 1,500 miles). |
1Total operating expense for all operations and service (in millions).
2Scheduled all-cargo operations expense.
3Total scheduled-service cargo revenue, less scheduled all-cargo operations revenue, carried as a by-product in aircraft belly compartments. Includes freight, express, priority and non-priority U.S. mail, and excess baggage.
4Total non-scheduled revenues times 0.95, assuming charter operations would only be conducted at a profit.
5Total transport-related expense, less any excess of expense over total transport-related revenues.
6We here project costs from April 1, 1979 (the midpoint of the data year ended September 1979) to April 1, 1980 the resultant increase factor effective through April 30, 1980.
7Operating expense per ASM for year-ended September, 1979, times projected change.
8Projected operating expense per ASM on April 1, 1980 divided by the operating expense as at July 1, 1977.
9Adjustment results in a 2.5 percent increase in level over current January 1, 1980 factor.
10Additional rental expense that would have been incurred had leases not been capitalized under FASB-13, less actual amortization of capitalized lease expense.
11Total fuel cost, scheduled service, times complement of rate of All-Cargo expense to total Operating Expense.
12Order 77-7-26.
13Year ended March, 1977 cost per ASM, times cost escalation factor of 1.04543 (to July 5, 1977). See DPFI workpapers, Y.E. March, 1977.
14Estimated average cost per gallon for the trunk plus local service carriers at April 1, 1980, divided by the average for the year ended September, 1979 (48.33¢).
15Change in Trunks plus Locals cost per ASM as at April 1, 1980, to year ended September, 1979 times total Psgr/Cargo cost for the year ended September, 1979.
16Includes Alaskan, Hawaiian and other regional carriers.
[PS-92, 45 FR 24119, Apr. 9, 1980, as amended by Doc. No. DOT-OST-2014-0140, 84 FR 15947, Apr. 16, 2019]
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