Air Transport
Twa Planner Examines Load Factor Standard
Under the CAB’S load factor standard, any shortfall below 55% is treated as presumptive managerial guilt of over-scheduling, for which the punishment is a fare level inadequate for reasonable earnings. In macro terms, the arithmetic for avoiding a slip in load factor is simple: if the industry expects 116 billion passenger miles, all we have to do is limit seat miles to 211 billion, and the result is the desired 55% load factor.