I would like to know whether the following categories from Corporate Income Statement are included in Flight Costing Calculation:
- Passenger Handling Fees (I do not see this category under Flight Costing)
- Salaries (I only see Management, and Crew under Indirect Costs - are these the salaries paid, and are these the only salaries paid?)
- Miscellaneous expenses (I do not see this category under Flight Costing)
In other words, if my Flight Costing states that I have Overall profit (last line) of +18,287 AS$, is anything else deducted from this amount, or is this my REAL NET profit (meaning this is what is left after paying all direct, indirect, and whatever other costs there might be)???
* Passenger Handling Fees are visible on the flight details report, accessible from the Route Management page. Click on where it says "details". The cost is listed in the third line under Direct Expenses. It's called "Ground Handling".
* Management and Crew under Indirect Costs are the ratio cost of the employees involved in the flight. This includes pilots, pursers, flight attendants, and the employees that work at the airport office. It also includes the "management" part of your staff. Basically, this is your entire Week End Closing salary payment, broken down among the flights that you have. It's not equal on all flights, but it all adds up to the same number in the end.
* Miscellaneous expenses are costs like if you cancel a flight, or do anything else that costs money that isn't listed. Cancelling flights is the main reason this amount will be more than $0.
If you are looking at the flight information (details), the one I pay more attention to is the second number under "Accumulated". That's the amount that's placed into your account when the flight takes off. The other costs (indirect costs) are ones that are taken out at the end of your company's business week, or when the plane is due for maintenance.
$18,000 is a lot to be making for one flight, by the way. Kudos.
Thank you caithes. How much do I pay for cancelled flights when I have to refund money to customers? is it a set fee or a percentage of the fare paid, on top of the fare paid?
Also, in the upcoming paument deductions, there are two main items, aircraft leases, and "Week End Closing"... this week end closing, if I understand it correctly form your post, are the salaries to be paid?
Thank you caithes. How much do I pay for cancelled flights when I have to refund money to customers? is it a set fee or a percentage of the fare paid, on top of the fare paid?
Every customer gets three times the amount he paid for the flight, so if you have 100 passengers in Economy class with a ticket cost of $100 and 20 passengers in Business class with a ticket cost of $200, cancelling the flight will cost you $42,000:
(100 * 100 * 3) + (20 * 200 * 3) = 42,000
Also, in the upcoming paument deductions, there are two main items, aircraft leases, and "Week End Closing"... this week end closing, if I understand it correctly form your post, are the salaries to be paid?
Every customer gets three times the amount he paid for the flight, so if you have 100 passengers in Economy class with a ticket cost of $100 and 20 passengers in Business class with a ticket cost of $200, cancelling the flight will cost you $42,000:
(100 * 100 * 3) + (20 * 200 * 3) = 42,000
Jeeze... I didn't know that... and I was cancelling flights not to lose $500 or $1000 AS$ (after direct operating costs) and maybe I lost much more in the process. WOooow. Thank you very much for this information.
Yeah, not only did you lose money, also your image rating suffers when you cancel flights left and right. ;)
Personally, as long as the flight covers at least the direct operating costs, I never cancel a flight. Cancelling a flight makes financial sense when you have maybe 10 out of 100 seats booked, but you will still take a hit to your image rating. So use this tool sparingly.