Operational Revenue – Passenger
The DOC is directly related to the cost of development and the cost of production to the manufacturer as well as the cost of operation Therefore the DOC of two aircraft analyzed with the same method and conditions will allow both the airframe manufacturer and the airline to select the better aircraft. This is not the whole story, however. One aircraft may be able to attract more payload than the other. Since passenger carrying aircraft should be compared at the same level of comfort only the time saved by the passenger would make him pay more for a ticket. In many publications, for instance by Mizuno and others . the additional revenue due to time savings w as found by means of a qucstionairc. They found the value of time for economy travellers to be $40 (1990) per hour. The question is whether economy passengers would stay an hour longer in the airplane if they were paid less than $40 dollars an hour to do so. In the author’s opinion more titan half the passengers would Based on Steiners (351 book 1 propose to use the average hourly wage as the time value of the economy passenger. To compare one aircraft to a reference aircraft
wc have to subtract the additional revenue due to time savings of the aircraft with respect to the reference aircraft.
In this expression $20 represents the estimate average hourly income of US air travel* lers in 1995. A corrected total operating cost for a balanced market can now be defined as:
TOC^r ~ DOC ♦ IOC – ^REV