Topic: Direct Overhead Cost

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The Zen "Offer"
Episode 29 12:02 - 13:57

29: The Zen "Offer"

Low-Cost Carrier Business Models, Southwest and EasyJet

Low-cost airlines like Southwest and EasyJet maintain profitability by minimizing the time aircraft spend on the ground, as planes only generate revenue while flying. The business model relies on rapid turnaround times, passenger-assisted cleaning, and strict adherence to direct overhead cost (DOC) spreadsheets. These costs include hourly maintenance, fuel burn, and component depreciation, making the industry a high-volume, low-margin operation.