KPI ANALYSIS OF AIRLINE INDUSTRY

THE CHOSEN ONE

KPI

KEY PERFORMANCE INDICATORS

FINANCIAL

SERVICE

KPI
FLIGHT OPERATIONS

CUSTOMER

FINANCIAL KPI
To judge whether the company has been able to match the revenues with the expenses

Whether funds allocated are used properly.

A negative bottom line should be a cause for further investigation and immediate action.

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Revenues Cash Inflows the airlines enjoys in a particular year Expenses Cash Outflows the organization has to bear for various direct and indirect spending ROIC (Return on Invested Capital) EBIT (Earnings Before Interests & Taxes) Operating profit Cash flow Outstanding debt Level of working capital Market value against asset value RASK (Revenue Per Available Seat)

CUSTOMER KPI
Usually involve passengers in the evaluation process

Customer Experience is the key

Complaints should be alarming enough to change or improve any flaw in the service.

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Types of cuisine offered Baggage rates Response Time for queries Cancelled Flights Missed Connections Yield Load factor Spill

FLIGHT OPERATIONS KPI

Deal with airline operational aspects

Fewer flights and more passengers would mean an upgrade, replacement, or addition of aircrafts

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Flights Number of flights in a particular year Passengers Number of passengers carried in all the flights in a year Available Flying Time / Aircraft utilization/ Daily Pilot Utilization Amount of lost baggage on connecting flights Percentage of Flights Departures Delayed > 15 minutes Average Minutes Delay for Delayed Flights / All Flights Percentage of Flights Delayed Due to Technical / Commercial reasons Incidence of maintenance schedule changes Crew productivity and cost/ Crews per aircraft Average turnaround time, Average block hours per day

SERVICE KPI
Gives a good grasp on how each employee in the service department is doing

Give an idea as to how new equipment and facilities improve service and eventually sales

Used in managing performance of airline companies that typically deals with service oriented activities

Passenger Seats Occupied Percentage of seats occupied by passengers in a particular flight Freight and Mail Indicates the commercial load of the Airlines

No. of partners in supply-chain

No. of accidents

Number of PAX

Number of transfer PAX

Number of Frequent Flyers

UNDERSTANDING KPI

COMPANY ANALYSIS

VISION
To be the best & most successful Company in the Airline business.

MISSION
To ensure that the British Airways is the customer s 1st choice through the delivery of an unbeatable travel experience.

STRATEGY AND OBJECTIVES

KEY PERFORMANCE INDICATORS

Three themes are used to set targets for the basis of evaluation. They are: Customer recommendation,

Operating margin and Network punctuality.

ANALYSIS

SUBMITTED BY TEAM

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