ABSTRACT
Air transport system economics usually comprises an analysis of the system’s costs, revenues and profits. In managing the system’s operations the prime objectives are to simultaneously maximise the profits and requests of users (air passengers, and freight shippers and owners). This can be done either by maximising the revenues, minimising the costs, or by both simultaneously. Possibilities for increasing revenue are limited by market conditions due to constraints in the highest acceptable prices of particular services. Costs are mostly dependent on external factors like the prices of the main inputs (labour, capital and energy) and internal system’s efficiency in spending available resources. The profits are dependent on the differences of both precedence items and taxes.
