What is a COST INDEX and how AIRLINES use it
What is a cost index and how does it influence the planes performance. I´ll go over some basic details on what defines the cost index, like flight operational costs, what they are made of and how they have an impact on daily flight operations. Another very big part of the cost index calculation is the current fuel price. As fuel is the denominator in the division, it has the bigger impact on changing the value of the cost index.