Paper presented at the 23rd Annual Southern African Transport Conference 12 - 15 July 2004 "Getting recognition for the importance of transport", CSIR International Convention Centre, Pretoria, South Africa. From the NEPAD objective of partnership in the African continent, major connectivity within
Africa as should be addressed through air transport. The paper involves, describing the
nature of the airline industry, especially in the African situation with some of the issues being
high airfares and poor accessibility within the continent. In order to address these problems
however, an analysis of the minimal operating costs and key factors affecting route costs is
carried out. The aim of the paper was to develop from first principles, a cost model to
calculate operating costs along any route in the African continent and test its applicability.
The costing of an airline service is reviewed through existing literature and a compilation of
the structure, components and their equations and default values done. A model structure to
calculate these operating costs on a route is set up, while data is analysed to provide databases
and calculations to the model. The model is then calibrated by comparing costs calculated
with fares of a given route within Africa, showing its applicability while proposals for further
research in hubbing to consolidate traffic as a method of minimising costs for airlines.
This paper was transferred from the original CD ROM created for this conference. The material on the CD ROM was published using Adobe Acrobat technology. The original CD ROM was produced by Document Transformation Technologies Postal Address: PO Box 560 Irene 0062 South Africa. Tel.: +27 12 667 2074 Fax: +27 12 667 2766 E-mail: firstname.lastname@example.org URL: http://www.doctech.co.za