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Definition of Cost Index
Cost index is a numerical value ranging from 0 to 100 that is programmed into the Flight Management System (FMS) of an aircraft to fulfill operational necessities. The cost index value is usually obtained by calculating the fuel expenditure versus the time-related expenses of the aircraft. The optimized cost index relates to finding the appropriate balance between the cost of fuel and the cost of time for the operation of an aircraft. It can be adjusted based on weather conditions, flight delay, and refueling requirements to ensure the aircraft’s safe and efficient operation. The Cost index is a crucial parameter used by airline operators to optimize flight planning, reduce fuel consumption, and cut down operational expenses.
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