The Optimal Aircraft Size and Economies of Scale in Iran Air Domestic Routes

A Commercial airline can generate more revenue and provide more capacity by either rising service frequency, or increasing aircraft size, or both. The airlines’ choices have a significant effect on their own performance as well as the performance of airports. If an airline uses larger carriers, then their average costs will tend to be less and they can benefit the economies of scale. In addition, using aircraft with more capacity allows airports to serve more passengers with the same number of aircraft landings or departures. Thus choosing the size of aircrafts is a matter of importance for airlines. This study aims to examine this issue for Iran Air by scrutinizing the relationship between aircrafts costs and the size of commercial passenger jets for its selected domestic routes over. ..