The Conventional method of assessing the direct costs or the aircraft type costs on a passenger mile or ton mile basis does not necessarily give a sufficient indication of the economic merit of a particular type of transport aircraft. It can be misleading when comparing aircraft of widely different design, and it does not indicate the best routes for effective airline exploitation.

The profit margin in relation to the fundamental cost or investment unit of the individual airline must be the ultimate yardstick of transport aircraft selection and this is here analysed with a view to providing further insight into the optimum conditions for potential profits. This study of the subject draws attention to the primary factors involved and suggests a criterion which can be simplified into a form valid for most airline economies.