Bank Key Performance Indicators Key Performance Indicators in

							Key Performance Indicators in Airline
            Operations



            Sergey Tiourine
            Carmen Systems
                                    Outline



•   Background
•   Objectives of this study
•   How to approach these goals ?
•   What have we done so far ?
•   Plans for the coming year
                                             Background



The project in cooperation with



started in the beginning of 2004.


Main objective: Document the relationship between
 operational Key Performance Indicators (KPI),
 financial KPIs and financial performance.
 total                              crew strike             Executive Dashboard
 operating
 cost
                actual
                                                     projected


                                budget




             -2 month    -1 month            today       +1 month            time

                                                        crew operating
                                                        cost development




                                                                                    Planning stages

crew                           crew strike
operating
cost            actual
                                                       budget
                                                                 projected

             -2 month    -1 month            today       +1 month            time
                                                   Approach




• Review airline practices of measuring operational
  performance

• Select candidate operational KPIs through a series of
  studies for different types of airlines

• Identify financial KPIs

• Develop an airline profitability model to study
  relationship between operational and financial KPIs
                                        What have we done so far ?




1. Performed the literature review of industry standard
   operational performance measures

2. Made a case study of current practices of measuring
   operational performance at Aeromexico

3. Prepared simulation environment by linking Carmen
   Integrated Operations Control System with MIT
   Extensible Air Network Simulation (MEANS)
                                                                                              Literature review
                                                                                           Literature review: 1

•   ASKER, James R, “Why Are Passengers So Angry at Carriers?”, Aviation Week & Space Technology, Nueva York,
    Octubre 1999, vol. 151 núm. 17, p50
•   AUSTRALIA. SERVICIO DE PUBLICACIÓN DEL GOBIERNO. International Performance Indicators – Aviation,
    Agosto 1994, <http://www.pc.gov.au/bie/research/rr59/>, [Consulta: 28 de Enero del 2004].
•   BIBIAN, Cinthya, “Pierden más aerolíneas”, Reforma, México, D.F., Martes 9 de Marzo del 2004, p.7A
•   BOWEN, Brent D. y Dean Headley, “The Airline Quality Rating 1998”, Abril 1998,
    <http://ai.unomaha.edu/aqr/aqr98.html>, [Consulta: 28 de Enero del 2004].
•   CANADA. DEPARTAMENTO DE TRANSPORTACIÓN. Air Travel Complaints Commissioner's Report: July 2000 to
    December 2001, Agosto 2003, <http://www.cta-otc.gc.ca/cta-otc2000/report-rapport/2002/intro2_e.html>,
    [Consulta: 12 de Marzo del 2004].
•   ESTADOS UNIDOS. ASOCIACIÓN DEL TRANSPORTE AEREO. “The Airline Handbook – Online Version”, Mayo
    2003, <http://www.air-transport.org/public/publications/display1.asp?nid=964>, [Consulta: 12 de Marzo del 2004].
•   ESTADOS UNIDOS. ASOCIACIÓN INTERNACIONAL DEL TRANSPORTE AÉREO. “Global Airline Performance –
    Improving your business”, <http://www.iata.org/WHIP/_Files/WgId_0265/GAP_Presentation.pdf>, [Consulta: 12 de
    Marzo del 2004].
•   ESTADOS UNIDOS. DEPARTAMENTO DE TRANSPORTACIÓN. BTS Indicators Report Shows September 11
    Impact on Large Airlines. Marzo 2002, <http://www.dot.gov/affairs/bts0302.htm>, [Consulta: 12 de Marzo del 2004].
•   ESTADOS UNIDOS. DEPARTAMENTO DE TRANSPORTACIÓN. DIVISIÓN DE PROTECCIÓN AL
    CONSUMIDOR DE LA AVIACIÓN. Flight Delays, <http://airconsumer.ost.dot.gov/reports/delay.htm>, [Consulta: 12
    de Marzo del 2004].
                                      Simulation environment: MEANS


                 Weather
                 Module




             Enroute Module
                   Enroute




              Tower Module
         Arrival             Departure
         Queue                Queue
 TFM                                                  Airline
Module                                                Module
                 Taxi Module
          Taxi                 Taxi
           In                  Out



                 Gate Module
                    Gate
                              Simulation environment: Airline module


Output to MEANS:        Input from MEANS:
• schedule changes      • actual times
                        • GDP
                                           Airline event generator:
                                           • maintenance
                                           • crew
                                           • passengers
Simulates airline SOC

                        IOCS


               Crew                          Pax


                        Aircraft
                          Simulation environment: GUI




GUI screen dump picture
                          Simulation environment: GUI




GUI screen dump picture
                                                Next steps




1. Calibrate and internationalize MEANS

2. Conduct a series of simulation studies for
   different types of airlines
       Thank you!




sergey.tiourine@carmensystems.com