Load factor is a measure of efficiency and therefore most commonly used to describe performance of airlines. This paper models load factors as a function of nine potential variables. Data were obtained for seven major airlines in Iran and the period of study is from 1997 to 2006. The results obtained suggested that companies should increase their investment in computerized reservation systems, improve on their operation planning, change in management style and have more control in managing their airlines. The government of Iran should also maintain or continue giving subsidy in order to improve load factors and hence the performance of Iran Airlines.
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