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British Airways operates flights between London and New York. For the month of September 2024, the airline incurs the following costs related to the London

  1. British Airways operates flights between London and New York. For the month of September 2024, the airline incurs the following costs related to the London to New York route:

Cost Category

Amount ($)

Fuel

5 million

Crew Salaries

3 million

Aircraft Maintenance

2 million

Landing Fees

1 million

Passenger Service Costs

500,000

  1. Required:
    • Calculate the total operating costs for British Airways on the London to New York route.
    • Determine the operating cost per flight assuming 20 round trips during September 2024.
    • Analyze the cost per passenger assuming an average of 200 passengers per flight.
    • Discuss the cost structure of operating costing in the airline industry.
    • Recommend cost control measures for British Airways to reduce operating costs.

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