The company per mile place – RAMS

The determination of revenue for available seat miles of the RAMS’

The company per mile place (RAMS) – a Unit of measurement commonly used to compare the efficiency of various airlines. It is obtained by dividing the operating profit seat miles (ASM). As a rule, the higher RAMS, the more profitable the airline in question. The company is represented in cents and is not limited exclusively to the sale of tickets, as well as other factors influencing the effectiveness and cost-effectiveness are taken into account.

Breaking down the revenue per mile in place of the RAMS’

Because it is more comprehensive than total revenue, including all operating income, from the point of view of capacity and not only revenue from passenger transportation — RAMS was adopted as a favorite standard Unit of measurement by most airlines and analysts who follow them. However, critics believe, to remember, airlines, like most businesses, have traditionally preferred to use metrics that can cast them in the best light.

By including all sources of income, the RAMS includes many sources of income of air carriers experimented with, including fees for baggage, seat selection, food and drinks and Wi-Fi.

Cost per available seat mile (casm section) is similar and associated performance metrics, but focuses on the cost impact on airlines bottom line.

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