Airline’s business performance indicators and their impact on operational efficiency

Airlines must constantly evaluate the costs and efficiency of their operational performance indicators to establish a competitive business market strategy. This study aims to investigate the relevance of some performance indicators of airline´s management and operational efficiency. With the use of...

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Main Authors: Alexandre Pinchemel, Mauro Caetano, Ricardo Messias Rossi, Marco Antônio Silva
Format: Article
Language:English
Published: FUCAPE Business School 2022-01-01
Series:BBR: Brazilian Business Review
Subjects:
Online Access:http://www.redalyc.org/articulo.oa?id=123075330004
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author Alexandre Pinchemel
Mauro Caetano
Ricardo Messias Rossi
Marco Antônio Silva
author_facet Alexandre Pinchemel
Mauro Caetano
Ricardo Messias Rossi
Marco Antônio Silva
author_sort Alexandre Pinchemel
collection DOAJ
description Airlines must constantly evaluate the costs and efficiency of their operational performance indicators to establish a competitive business market strategy. This study aims to investigate the relevance of some performance indicators of airline´s management and operational efficiency. With the use of a panel data regression for the four largest private Brazilian airlines - Avianca, Azul, Gol, and Latam, from 2009 to 2017, the results show that operational efficiency is achieved when there is a greater offer of routes and flight frequency to meet passenger demand, generating higher revenue passenger kilometer (RPK). On the other hand, shorter stage length and reduced takeoff numbers affect inversely proportional the operating efficiency as a function of fuel consumption and energy capacity. Through the analysis of these performance indicators, it is possible to determine strategies that support decision making to increase the operational efficiency of airlines.
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spelling doaj.art-9593c152b9db4f098471a257fe5213c52024-03-21T19:30:20ZengFUCAPE Business SchoolBBR: Brazilian Business Review1807-734X2022-01-01196642665http://dx.doi.org/10.15728/bbr.2022.19.6.4.enAirline’s business performance indicators and their impact on operational efficiencyAlexandre PinchemelMauro CaetanoRicardo Messias RossiMarco Antônio SilvaAirlines must constantly evaluate the costs and efficiency of their operational performance indicators to establish a competitive business market strategy. This study aims to investigate the relevance of some performance indicators of airline´s management and operational efficiency. With the use of a panel data regression for the four largest private Brazilian airlines - Avianca, Azul, Gol, and Latam, from 2009 to 2017, the results show that operational efficiency is achieved when there is a greater offer of routes and flight frequency to meet passenger demand, generating higher revenue passenger kilometer (RPK). On the other hand, shorter stage length and reduced takeoff numbers affect inversely proportional the operating efficiency as a function of fuel consumption and energy capacity. Through the analysis of these performance indicators, it is possible to determine strategies that support decision making to increase the operational efficiency of airlines.http://www.redalyc.org/articulo.oa?id=123075330004air transportbusiness strategiescompetitivenessoperations
spellingShingle Alexandre Pinchemel
Mauro Caetano
Ricardo Messias Rossi
Marco Antônio Silva
Airline’s business performance indicators and their impact on operational efficiency
BBR: Brazilian Business Review
air transport
business strategies
competitiveness
operations
title Airline’s business performance indicators and their impact on operational efficiency
title_full Airline’s business performance indicators and their impact on operational efficiency
title_fullStr Airline’s business performance indicators and their impact on operational efficiency
title_full_unstemmed Airline’s business performance indicators and their impact on operational efficiency
title_short Airline’s business performance indicators and their impact on operational efficiency
title_sort airline s business performance indicators and their impact on operational efficiency
topic air transport
business strategies
competitiveness
operations
url http://www.redalyc.org/articulo.oa?id=123075330004
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