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  "documentTitle": "Airline Economic Analysis",
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  "authorName": "Oliver Wyman",
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  "notes": "The chart illustrates the relationship between aircraft stage length and direct operating costs per available seat mile (CASM).",
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      "text": "Frontier's A320 has the lowest unit costs measured on a Direct CASM basis when stage-length is taken into account, much lower than Frontier's A318, which is being retired.",
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      "text": "Scatter plot of Direct CASM vs Stage Length",
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      "kind": "disclaimer",
      "text": "Source: PlaneStats.com for Q2 2011. Mainline operations only. Costs include direct aircraft operating expenses. Direct costs include pilots, fuel, aircraft ownership, maintenance and insurance. Indirect expenses not reported by aircraft type.",
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      "kind": "paragraph",
      "text": "AirTran’s 737-700, which had the lowest unit costs last year, now has significantly higher unit costs than the same Southwest aircraft. AirTran’s 117-seat 717 has the highest unit costs of the three narrowbodies within the Southwest/AirTran fleet, although still lower than JetBlue’s 100-seat E190.",
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      "text": "The values plotted are for Direct CASM only—the direct operating costs reported by the carriers on DOT Form 41, including pilots, fuel, aircraft ownership, maintenance, and insurance. Indirect costs are not included because the carriers may allocate these in different ways. To smooth out quarterly variations caused primarily by maintenance requirements, the data is for the full year ending Q2 2011.",
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      "text": "JetBlue’s two aircraft have very different stage lengths and Direct CASMs, at 684 miles and approximately 6¢ for the E190, versus 1278 miles and 10¢ for the A320. For the E190 to be successful, it requires a different mission than the A320, as the smaller aircraft has much higher direct costs and therefore would not be successful in a low-fare environment.",
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      "text": "Frontier’s A320 has the lowest unit costs measured on a Direct CASM basis when stage-length is taken into account, much lower than Frontier’s A318, which is being retired. The results of Frontier’s most recent restructuring are not included in the chart, which is for the year ending Q2 2011.",
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      "kind": "title",
      "text": "EXHIBIT 15: DIRECT CASM PLOTTED AGAINST AVERAGE STAGE LENGTH BY AIRCRAFT TYPE, ACTUAL FUEL PRICES (YEQ2 2011)",
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