Red Impulse
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- Joined
- Mar 17, 2010
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Have a rather fundamental question on the Cost Index. I'm having a difficult time understanding the Cost of Time component of the Cost Index. The problem basically lies on what to include and what to exclude from the Cost of Time.
Should a particular cost's time relatedness (whether it varies with increases in flying hours) be the excluding criteria or should it be the cost's nature, whether its related to operations or not, would be. Or it might also be both, that the costs to be included in the computation of Cost of Time should be operationsand also time related.
For example, I have read that what should be included would only be those Direct costs (i.e. related to the operation of the aircraft), so anything done in the aircraft other than for its normal operation (e.g. cabin interior re-upholstery) should not be factored in. But what if, just for the sake of argument, the billable amount for re upholstery services were done with a fixed rate tied up to the aircraft's flying hours, would this cost be, in fact included in the Cost of Time computation ?
Should a particular cost's time relatedness (whether it varies with increases in flying hours) be the excluding criteria or should it be the cost's nature, whether its related to operations or not, would be. Or it might also be both, that the costs to be included in the computation of Cost of Time should be operationsand also time related.
For example, I have read that what should be included would only be those Direct costs (i.e. related to the operation of the aircraft), so anything done in the aircraft other than for its normal operation (e.g. cabin interior re-upholstery) should not be factored in. But what if, just for the sake of argument, the billable amount for re upholstery services were done with a fixed rate tied up to the aircraft's flying hours, would this cost be, in fact included in the Cost of Time computation ?
