Discussion
The utilisation of an aircraft, in block hours per year, matters to cost because
Answer: B
Correct answer: Fixed costs are spread over more flying hours
Depreciation, insurance and financing accrue with the calendar rather than with use, so an aircraft flying 3000 block hours a year carries the same annual fixed charge as one flying 2000 - but spreads it over half as much again. Fixed cost per block hour falls in direct proportion.
Nothing else in the list follows. Crew salaries and fuel burn per hour are unchanged, and maintenance intervals set in hours or cycles come round sooner, not later. High utilisation is the low-cost carrier's central lever precisely because of this arithmetic.
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