Well, that’s the question most of us have in our minds because we get to see a lot of varieties and variations. I had similar doubts when I boarded my first flight. I could see a lot of advertisements and glossy attractive infographics that spoke about cheap flight tickets and direct flights and many other services. So I always wondered about the formation of flight fares. You see they are not really a tricky thing to solve or decode. I have always hustled deep inside my brains because I did not do my groundwork well. It was later when I started working as a travel writer; I came to know about the airline pricing strategies. So this article is going to talk to you about the formation of flight fares so that you get to choose your flight tickets based on the fares wisely.
So basically the flight fares usually comprise of little bits which form the entire costing structure. So let’s start talking about them without further ado.
So the primary and the most important element of any costing is the aircraft fuel. Usually, a rough calculation of nearly 30% of the flight fare consists of aircraft fuel. It is one of the most expensive elements or contribution. Every plane is structured in a way that they need a different amount of fuel and that is what differentiates the flight fares in the first place. So nearly 25% – 30% of the costing of the aircraft fuel is taken into consideration for framing the flight fares.
PASSENGER AND LUGGAGE SERVICEs:
This is taken into consideration in many possible ways. Firstly the checklist of the food and drinks of the passenger is taken into consideration. Then the check in and check out fares that include even the parking and all are used which is followed by the luggage services which sort all the things together to frame nearly 26% – 30% of the flight fares.
Nearly 16% percent of our flight fares are extracted from the insurance funds and the money put in for small repairs and other mandatory services that might come in handy. All of this comes under the regular maintenance of the plane.
Of course, the salaries of the people working for us at the airports or in the flights or anywhere related to the flight services are to be taken from us and so the 10% contribution goes to form a part of our flight fares. I am sure the flight fares of the business class flights are high as the salaries for people working in the business class must be a little higher to be extra nice to us. (Just kidding!)
DEPRECIATION AND LEASING:
Depreciation basically means a gradual reduction in the cost of the plane. This usually happens when the plane ages. The cost of these properties is usually covered by the owner if the plane is a private property. But if the planes are under the control of the aviation department then the costing is usually covered by adding the expenses to our lists. We contribute 5% of our flight fares to this.
Also Read: Tips for Booking Cheap AirFare
ADVERTISEMENT AND ADMINISTRATIVE COSTS:
This money which is nearly another 5% is commonly used by the air companies for the use of marketing strategies, promotions of their companies including their offers and deals, taxes and many other expenses. These costs depend on the situations of the country.
AIR NAVIGATION FEES AND, METEOROLOGICAL SUPPORT:
This forms 9% – 15% of our flight fares and that is used for the tracking of the flights during the flights. This also includes the airport services and other taxes that are to be paid to the airports and for the maintenance.
So this was all about the formation of flight fares and I hope you find it worthy enough and if you did then stay tuned for more freshly brewed content and do not forget to like, comment and share this piece of information with everyone you know. See you again with another useful article. Adios!
Author Bio: indianeagle.com is an innovative online travel company that enables its customers to book the Lowest Airfare to anywhere in the world.