VITAL STATISTICS IN AIRLINE BUSINESS PERFORMANCE FOR QUALITY AND SAFETY MANAGERS
VITAL
STATISTICS IN AIRLINE BUSINESS PERFORMANCE FOR QUALITY AND SAFETY MANAGERS.
TRAFFIC
Available Seat Mile (ASM)/Kilometres
(ASK) – Multiply the number of passenger seat available for
the flight with the distance.
Revenue Passenger Mile (RPM)/Kilometres
(RPK) – Multiply the number of revenue passenger carried for
the flight with the distance.
Load Factor (LF) –
Relationship between ASM/ASK and RPM/RPK realised. The higher the load factor the lower the cost of operating.
Passengers Boarded –
Actual number of passenger enplaned.
Cargo Tonne Miles (CTM)/Kilometres
(CTK) – Multiply the number of revenue load carried for the
flight with the distance.
FINANCIAL
Total Operating Revenues –
Revenues accrued to the air carrier from operation of air transport services
and any services incidental thereto.
Total Operating Expenses –
Expenses incurred by the air carrier from operation of air transport services
and any services incidental thereto
Operating Profit/Loss –
The difference between Operating Revenue and Operating Expenses
Non-Operating Revenues –
Revenue accrued to the air carrier from non-operating nature.
Non-Operating Expenses –
Expenses incurred by the air carrier from non-operating nature.
Cost Per Available Seat Mile
(CASM)/Kilometres (CASK) – Cost per available seat mile/ kilometres, as the name
suggests, reflects the costs incurred by an airline to fly a single seat one
mile. It is obtained by
dividing the operating costs of an airline by available seat miles/kilometres
(ASM/K). Generally, the lower the CASM/K, the more profitable and efficient the
airline.
Cash Flow -
A measure of the amount of cash
generated by an airline's normal business operations. Cash flow can be
used as an indication of an airline's financial strength.
NB
Items
that constitute each item above could be obtained from ICAO, IATA, Bureau of
Transportation Statistics (BTS), Airlines for America etc.
The
Quality Manager or Safety Manager of an airline must be interested in the above
statistics for his airline. He must be able to justify his annual budget by
being able to prove to the management how is quality and safety activities has
contributed to lowering the operating expenses and increasing the operating
revenue. The availability of an airworthy aircraft that meets the regulatory
and airlines requirements will contribute to available seat miles/kilometre
while it is left for flight operations department and marketing/sales
department to ensure it is turned in to revenue. The Quality and Safety Manager
should also look for a way of contributing to the non-operating revenues by
creating opportunities through training, aircraft management etc.
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