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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