What is a COST INDEX and how AIRLINES use it?! Explained by “CAPTAIN“JOE


Dear friends and Followers I am back from my trip to New York City That’s why I wasn’t able to upload a video last week So sorry for that today’s topic will cover parts of airline operation costs and with a special focus on What is a cost index, so let’s get started. Cook 13, Runway 27 cleared for take-off. (Music) This video is sponsored by audible go to www.audible.com/captainjoe Joe or click the link in description the Box below to get an exclusive 30-Day free Trial and a book of your choice for free For example I would recommend the Highest Duty by Captain Sullenberger Or other aviation related books. Now as we’re going to explain the cost index in a moment We first need to take a look at some airline operation costs Which are a defining part of the cost index. Now most operation costs are given in cost per hour Meaning how expensive is it to operate an Airbus A320 per hour? regarding the cost of the actual airplane like leasing rates, crew, plane Maintenance airport charges like the landing and takeoff fees or ground services and many other Factors which play a big part in Keeping the airplane in the air and making an airline profitable. And as you might have noticed I didn’t mention another very big factor Fuel costs, but I’ll get back to that in a minute now the cost index value ranges from 0 to 999 To get the cost index you need to divide the flying costs by the fuel costs per hour now Let me give you an example The flying costs of an Airbus A320 are roughly sixteen thousand five hundred US dollars per hour Including all the expenses I’ve mentioned before The average fuel flow of an A320 is at about 2,300 kilograms per hour which equals one thousand one hundred us dollars per hour and if you divide those two factors you get the cost index for your flight Now the flying costs don’t vary that much The leasing rates are pretty fixed over the years so is the salary of the crew and the maintenance schedules are fairly repetitive too, but the airport costs can differ a lot that’s one of the reasons why Low-cost airlines flies to these cheap little Airports to reduce the overall Expenses, but the fuel price constantly varies over time. now Let’s say the fuel costs per hour are at $800 dollars, you would see that the cost index would immediately rise as you type in the cost index on the MCDU you the FMS Will calculate the speed for the different flight phases climb, Cruise and descend in accordance with the cost index so the more expensive the fuel The lower is the cost index the slower the aircraft will fly to be more economically Efficient the higher the cost index the faster the plane will fly due to the fact that the fuel is cheap But keep in mind Flying faster also means your engines will burn more fuel per hour Meaning you’ll need more trip fuel for the same distance compared to a lower cost index now the cost index won’t influence the take of all the approach part of the flight so will start and end the profile at 10,000 feet Given the fact that a lot of airlines have speed restrictions below 10,000 feet so the cost index is negligible Using a lower cost index the Aircraft will fly at a reasonable low speed Resulting in a higher climb rate due to the excessive engine thrust at The same time it will recommend to fly at higher levels Resulting in a lower fuel burn and a slower speeds the higher cost index will Recommend a lower level which will result in higher speed obviously [at] a higher fuel burn as you are flying Faster most of the Engine’s thrust is used to maintain the high speed resulting in a lower pitch attitude Giving you a lower climb rate as you start you descend with the lower cost index your top of this endpoint is fairly Early as you are descending at a lower speed? Resulting in a lower descent rate the average descent rate would be at about 1500 feet per Minute using the High cost Index will lead to a relatively late top of descent resulting in a high descent rate and speed as the Constant index can either Lengthen or Shorten the flight time it is very efficient on flights Which are longer than two or more hours depending on the current fuel price ETC. Shorter domestic flight a high cost Index will reduce the flight time by only one to six minutes which in my opinion is not very efficient But sometimes your company will send you a message stating that you should Increase the cost index to reduce delays if you have passengers on Board with connecting flights or other reasons So as you can see the cost index is the suite balance between flight operational costs, current fuel prices and the flight time if you are wanting to become an airline pilot This is also a common question during your airline assessment so save this video in your playlist I hope you enjoyed this video about the cost index make sure to perform a touching and go at my instagram account the link in the Description below and subscribe to my channel, so you won’t miss out upcoming videos? Thanks for your time all the best your Captain Joe Please click on the audible link in the video description below so you don’t miss out this great opportunity on getting an exclusive 30-Day free Trial with audible they are the leading provider of premium spoken audio books and other audio Products, I’ve been an audible use of acquired some time now and I am amazed at their huge variety of audiobooks We you can easily download onto your smartphone iPad or other mobile devices I use it when I’m on a preceding flight or driving to work and currently I’m listening to the best-selling book the presentation secrets of Steve Jobs to learn on how to give a perfect presentation in the future because I’m going to give an aviation related Presentation on how to become a pilot at the end of this year and thanks to audible I got this book for free using my 30-day free trial So make sure to check it out because there is always something new you can read listen and learn Maybe I should bring out my own audiobook in the future

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