Enter the total cost of time and the total cost of fuel into the calculator to determine the airline cost index.
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Airline Cost Index Formula
The following formula is used to calculate an airline cost index.
ACI = TCT / TCF
- Where ACI is the airline cost index
- TCT is the total cost of time ($/hr)
- TCF is the total cost of fuel ($/lb)
To calculate the airline cost index, divide the total cost of time by the total cost of fuel.
What is an airline cost index?
Definition:
An airline cost index is defined as the ratio of time-related costs of operation of a plane to the total cost of fuel used in the same time.
How to calculate an airline cost index?
Example Problem:
The following example outlines how to calculate an airline cost index.
First, determine the total cost of time-related operations on the airline. In this example, the time related costs are calculated to be $1,000.00/hr.
Next, determine the total cost of fuel. In this case, the cost of fuel is measured to be $2.45/lb.
Finally, calculate the airline cost index using the formula above:
ACI = TCT / TCF
ACI = 1000/2.45
ACI = 408.1
