Suppose Air New Zealand takes off at the scheduled time and a passenger misses a flight. If the departure had been delayed, the passenger would have made it. In this case the variable cost to Air New Zealand for delaying departure to fill that seat would be negligible. Therefore, all costs associated here are fixed. But, for example, if Air New Zealand planned a new flight from another terminal, most of the costs would be variable and only a small portion would be fixed. The crew salaries that were fixed in the previous case have now become