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Title:

ANALYSIS OF RELATIONSHIP BETWEEN FINANCIAL HEALTH AND MAINTENANCE COST STRUCTURE OF U.S. AIRLINE INDUSTRY

Accession Number:

00611990

Record Type:

Component

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Order URL: http://worldcat.org/isbn/030905107X

Abstract:

The financial structure of the airline industry is examined and compared with the cost of maintenance and fleet age. The U.S. airlines studied are the nine that were classified as major airlines as of January 1, 1990. The Spearman rank correlation test is used to show that there is a correlation between the financial structure and maintenance cost structure of the airline industry. A causal forecasting model is then proposed to predict future maintenance expenditures based on the debt ratio. However, because of inadequacies with the measurements chosen, as well as the complex nature of the airline industry, the results of the study must be considered inconclusive. Although the airlines may appear superficially similar to each other, the characteristics of their composition, such as management, debt policy, route structure, fleet mix, unionization, and marketing policies, make them unique, and it may be inappropriate to attempt to extrapolate results of the individual airlines to the industry as a whole.

Supplemental Notes:

This paper appears in Transportation Research Record No. 1298, Public Sector Aviation Issues: Graduate Research Award Papers 1989-1990. Distribution, posting, or copying of this PDF is strictly prohibited without written permission of the Transportation Research Board of the National Academy of Sciences. Unless otherwise indicated, all materials in this PDF are copyrighted by the National Academy of Sciences. Copyright © National Academy of Sciences. All rights reserved

Monograph Accession #:

01495453

Authors:

Rodowicz, Edward J

Pagination:

p. 43-55

Publication Date:

1991

Serial:

Transportation Research Record

Issue Number: 1298
Publisher: Transportation Research Board
ISSN: 0361-1981

ISBN:

030905107X

Features:

Appendices (2) ; References (17) ; Tables (19)

Uncontrolled Terms:

Subject Areas:

Aviation; Data and Information Technology; Economics; Finance; Highways; Maintenance and Preservation; Society

Files:

TRIS, TRB

Created Date:

Aug 31 1991 12:00AM

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