Posts Tagged ‘Airlines’

2009 Best and worst airport on time performance

Thursday, February 18th, 2010

Nothing is worst than having to wait in a crowded airport for hours and hours or miss your connection flight because of a delayed aircraft. Such situations can create a lot of frustration and tension among passengers and usually lead to a lot of headaches for the airline representatives.

According with an EUROCONTROL (The European Organization for the Safety of Air Navigation) research from 2007, the major factors responsible for aircraft delays in Europe were airlines which accounted for 55% of the total fallowed by airports’ ground personnel (12%), air traffic control (10%) and weather (10%).

The situation is even worse if we consider that an airline delay is very hard to redress and in most of the cases leads to reactionary delays throughout the airline network system.

Thus, faced with these situations, airline operators have to cope with an avalanche of complaints, find alternative traveling solutions, make reimbursements or pay damage compensations, which in the end can seriously affect the bottom line of the companies.

Therefore delivering the best in class on time performance becomes a major challenge and in the same time responsibility for both airport authorities who administer these congested points as well as for the airline operators who are directly involved in passenger transfers.

More than ever, on time performance is considered today one of the most important key factors to success for the airline industry. It is usually expressed by two important key performance indicators:

% On time arrivals

% On time departures

While some operators prefer to adjust the tolerance intervals, in general a flight is considered “on time” if it arrives or departs less than 15 minutes after its scheduled take-off or landing time. What is beyond this time landmark counts for the negative side of airline companies “on time performance”. Knowing the “hotspots” in the industry, the airports with the worst on time record, is important for both airlines and passengers, that can use this information as part of their risk management plans. In January 2010, the Forbes Magazine compiled a report presenting the ten most delayed airports in term of “on time performance” for both arrivals and departures (Forbes, 2010). A summary of the results is outlined below:

Worst departure ranking

Worst arrival ranking

For more details about the major factors that can influence airline industry performance, smartkpis.com (eab group, 2010) provides its users with a comprehensive library of performance measures such as:

% Airport activity

# Average minutes delayed for all flights

# Average arrival processing time

% Lost baggage on connection flights

% Flights delayed due to technical issues

% Flights delayed due to weather conditions

Additional resources

References

Forbes (2010), “The World’s Most Delayed Airports”, available at: http://www.forbes.com/2010/01/22/most-delayed-airports-business-logistics-airports_slide_2.html (accessed 17 January 2010)

eab group (2010), “KPI examples for the Airport and Airlines industries”, http://www.smartkpis.com/kpi/industries/transportation/airlines/pag3.htm and http://www.smartkpis.com/kpi/industries/infrastructure-operations/airports (accessed 17 January 2010)

To compile our list, we use information from FightStats, an aviation data company which compiles flight information from airports, airlines, flight reservation systems and other sources around the world. We considered flights at the world’s 200 busiest airports by passenger volume, according to Airports Council International’s 2009 World Traffic Report. We included only airports about which FlightStats has the most detailed information. That means that some airports, particularly large hubs in South America, weren’t considered for our list.

On-Time Performance

Tuesday, September 8th, 2009

On-Time Performance is one of the most important Key Performance Indicators (KPIs) for the airline industry. There is a story about it being the main KPI used during the British Airways turnaround and successful privatization in the 80s by Sir John King, later Lord King. He was appointed as Chairman of British Airways in 1981 by Baroness Margaret Thatcher, with the mandate of preparing the airline for privatization. Lord King and Colin Marshal, the CEO at the time are credited with transforming the loss-making airline into one of the most profitable airlines in the world. At the time of privatization, the float was 11 times oversubscribed.

The on-time performance stood the test of time for the airline industry. What is special about this KPI is that is affects all perspectives of the Balanced Scorecard, having financial, customer satisfaction and learning consequences.

Today, airlines not only use this KPI, but also make the results public on their websites.
An example is Virgin Blue, member of the Virgin Group (a bitter rival of BA in the 80s and later). The latest monthly figures of the on-time performance of Virgin Blue are available on the website of the company, along with the archive of results from 2003 to date.

On-time performacne Virgin Blue

In terms of the measurement method, the website states:
“At Virgin Blue we measure our on-time performance as all flights that depart within 15 minutes of their stated departure time. We make no exception for bad weather, air traffic control, delays from suppliers, unscheduled maintenance, consequences of previous delays or anything else for that matter – for us on-time means on-time… no exceptions. All figures are based on pilot flight logs and are internally audited. We have worked hard with Department of Transport and Regional Services and other stakeholders to agree on set of rules for reporting on time performance data and are complying with these. ”

Across the Tasman, Pacific Blue is the first airline in New Zealand to make the On-Time Performance results public. The company also requested that the NZ Government make on-time performance reporting mandatory for all airlines operating in NZ.

It appears that On-time performance is a strong contender for a list of the the smartest KPIs used in business.

For more details see: % On-time performance for public transport services