Hey guys first round of homework in Managerial & cost accounting: the price of a plane ticket from Oslo airport to JFK airport in New York.


Not how much it costs the consumer, but how much it costs the Norwegian airline company 'Norwegian' to fly 1 passenger one time.

The plane we will be using is a Boeing 787 which as an MSRP of $213.8 million of which we can expect 60,000 flights in its life time = $3638 per flight.

We'll assume 250 passengers is the median amount per flight. so that's $14.55 per passenger per flight for the cost of the plane.

Then there's fuel consumption which on average is 2.4 litres per 100km per passenger. The distance between NYC and OSL is 5951 km so that's 142.8 litres of petrol per passenger for one flight.

Current prices of aviation fuel are $0.75/litre so that's $107.1 per passenger in fuel.


Then there's the crew for the flight..

which should consist of



* 5 air hostesses earning $9.50 per hour (US salaries, Norwegian air hostess would be earning significantly more, like $20-25 so I doubt Norwegian Airlines would use Norwegian workers)
* 2 pilots (captain and first officer) I figure they earn roughly $160 and hour (combined)
* any other crew I'm forgetting?


That's $47.50 + $160 * 8 hours flight time so $1660 / 250 = $6.64 per passenger


That brings us to $128.29 based on fuel consumption the price of 787 Dreamliner and salary cost of two pilots and 5 air hostesses.


Any one know if JFK has landing fees? If so how much?

What about the meals?

Maintenance cost of a 787 throughout its lifespan divided by amount of flights = ?

This post was edited by MGS4BestGameEverMade on Aug 24 2014 11:58am

This would be general overhead but still might trickle down to the cost of an average flight, ground crew who load baggage, refuel, etc and also the gate crew who usher in customers.

They also would have terminal fees which they pay the aiport and also insurance fees. Im sure they have to in some way shape or form pay something to TSA and the Fed in someway shape or form for having an airline charter.

Exactly.. Waay too many factors to count in, I knew this task would be close to impossible. I guess we can at least conclude that the minimum cost is $128.29 and that it'll only go up once we add in stuff like insurance fees, terminal fees, baggage crew etc.


FYI we checked price for flights in class, at the time we chose the plane ticket cost $300 for consumers. Of course this depends on which dates you chose and when you buy them but typical ticket prices are $300-400 ish (each way)

This post was edited by MGS4BestGameEverMade on Aug 24 2014 01:05pm

There is not really too many factors to count in, however a problem of opacity arises. You dont pay for all services that the airport offers one by one, you pay them in a single fee to the airport. However, this fee souldnt be public knowledge, as it is determined by the attractiveness of the airport, and the negotiations carried out between the airport and the airline.

If you were able to somehow find some kind of national average, a professor or teacher would be pleased if you wrote some assumptions like:
1. JFK is an airport in high demand --> Lets say the average fee is too low, and JFK can charge more.
2. Norwegian is a relatively small customer who doesnt bring a significant amount of business to JFK --> Less power in negotiations --> higher fee.
3. ???
4. Pleased professor

there's more to the cost of an employee than solely their salary. cost of training, health insurance, vacation time, social security, 401k, etc.

Exactly, thousands of factors so we never really got an answer but my lecturer accepted ~ $300-330 per ticket (each way) I came up with $316.28 while still forgetting certain factors. Class estimates varied from well under $200 to over $500.

the cheapest tickets on their website sell for just under $300 and the most expensive ones are up to $800-900ish so that gives you an idea of the profit margins they're working with.

Plus, the air companies received fuel at discounted, set prices that were determined at an earlier date, usually anywhere from 3 months - 2 years, depending on market conditions.