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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
- 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 |
- 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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