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This post addresses ratios to measure airline performance.

There are two ratios which are used to measure airline performance. One measures efficiency while the other measures equipment utilization. Is this sufficient? Describe what you think airlines should develop to measure performance. Be sure to describe how this data would be collected.

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Measuring airline performance by using the two ratios is not sufficient on their own, but they can be effectively used in combination with other performance ratios to give a more comprehensive view of actual performance. Another metric that could be used is a balanced scorecard. The data would be collected by analyzing each area at regular intervals. A starting metric in each area would be: a financial metric of increased revenue measured by seat revenue with a ...

Solution Summary

The solution provides a detailed explanation examining if ratios used to measure airline performance are sufficient, and what airlines should develop to measure performance. The ways that the data would be collected are also discussed.

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