Airlines- Business Analysis

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Airlines Metrics
Case Study Presentation – Addendum to the case material
Aircraft Utilization
Measure of aircraft productivity, calculated by dividing aircraft block hours by the number of aircraft days assigned to service on air carrier routes. Typically presented in block hours per day. Available Seat Miles (ASMs)

A common industry measurement of airline output that refers to one aircraft seat flown one mile, whether occupied or not. An aircraft with 100 passenger seats, flown a distance of 100 miles, generates 10,000 available seat miles. Block Hour

Time from the moment the aircraft door closes at departure of a revenue flight until the moment the aircraft door opens at the arrival gate following its landing. Block hours are the industry standard measure of aircraft utilization (see above). Cost per Available Seat Mile (CASM)

Measure of unit cost in the airline industry. CASM is calculated by taking all of an airline’s operating expenses and dividing it by the total number of available seat miles produced. Unit Cost per Unit of Output

A measurement that gauges total operating costs in relation to output/results. Dependability
This is the measure of an airline’s on-time performance. It includes the following measures: * D + five (D+5): departures that push back from the gate within five minutes of the scheduled time. * D + zero (D+0): departures that push back from the gate on time. * A + 15: arrivals within 15 minutes of the published arrival time. Load Factor

The number of Revenue Passenger Miles (RPMs) expressed as a percentage of ASMs, either on a particular flight or for the entire system. Load factor represents the proportion of airline output that is actually consumed. To calculate this figure, divide RPMs by ASMs. Load factor for a single flight can also be calculated by dividing the number of passengers by the number of seats. Operating Revenue

Revenues received from total airline operations including scheduled and...
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