| ASM: |
Available Seat Mile - the typical measure of airline capacity, ASM represents one seat flown one mile on an airlines route, regardless of occupancy. |
| CASM: |
Cost per Available Seat Mile - a measure of airline costs |
| EETC: |
Enhanced Equipment Trust Certificate. A structured financing arrangement that places aircraft into a trust to which an airline makes lease payments and from which debt holders receive payments. EETCs allow airlines to finance aircraft acquisitions through capital markets. Additionally, EETCs are being increasingly used to raise capital backed by other assets such as engines and spare parts. |
| Load Factor: |
The ratio of RPM to ASM, measures the percentage of available seats that are actually filled/sold to customers |
| RPM: |
Revenue Passenger Miles - a measure of airline passenger volume, represents one passenger carrier one mile. |
Planes to Profit
Analysis and commentary on phase 2 of the typical aviation
business model:
Phase 1: Buy Airplanes
Phase 2: ?
Phase 3: Profit
Chris Kerns
An aviation enthusiast since childhood, a licensed private pilot, a former Army officer, and an aeronautical engineer by education...
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