COST EFFICIENCY FACTOR Sample Clauses

COST EFFICIENCY FACTOR. A cost efficiency factor will be assigned based upon the individual carrier’s percentage decrease in total operating cost less fuel compared to the carrier’s total operating cost less fuel used in the immediately preceding final published Uniform Rates and Rules. Any percentage decrease in total operating cost less fuel greater than one percentage will receive a cost efficiency factor equal to one half of the decrease. The maximum cost efficiency to be assigned is four percent. If this calculation does not adequately predict cost efficiency such as when a carrier’s year-over-year increase is a result of operations to high cost locations or a carrier has introduced a fuel efficient aircraft with no prior year’s comparisons, carriers are encouraged to provide a narrative explaining justification for a higher cost efficiency rating. Supporting documentation of the proposed cost efficiency factor must be included. Any narrative provided is limited to 5 pages in length.
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Related to COST EFFICIENCY FACTOR

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