Rant Air – Welcome Aboard!

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Cost Index…

March 6th, 2008 · 3 Comments

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With the rising cost of aviation fuel, every airline on the planet has been in a sort of panic mode for the last two years. Right behind labor, fuel represents the biggest cost to an airline. Therefore, it is wise for an airline to do everything it possibly can to be as economical as possible with fuel.

On the equipment I operate for my employer, our Flight Management Computer (or “FMC,” the control panel of which is shown above) requires an input on the performance screen for something called a “Cost Index.” The Cost Index is essentially the ratio of the time-related cost (in $ per hour) of operating an airplane to the cost in fuel (in cents per pound). From the time I first started, it was Company policy to enter Cost Index figures of 28 for our 737-300/500 series aircraft, and 36 for our newer 737-700 aircraft.

The FMC uses the cost index along with some other data (winds, temperature, aircraft weight, etc) to figure the climb, cruise, and descent speeds for various conditions. We would always ask the FMC to compute ECON speeds, which are the most economical speeds (for the aircraft’s weight and the outside air temperature) related to the Cost Index you’ve inputed. We would typically see speeds in the -700 series aircraft in the range of 290 knots climb speed to .78 Mach cruise speed to 280 knot descent speeds. We were told that by following the speeds given to us by the F