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THE IMPACT OF ON TIME PERFORMANCE ON
OPERATION MANAGEMENT AND PASSENGER
LOYALTY TO AIRLINES.
REEFEAR EAPEAR ANAK AJANG
MAS...
Introduction
• On time performance commonly referred to as “OTP” is a standard aviation
measurement to track the day-to-da...
MEASUREMENT OF OTP
Terms Explanation
On time departure
(D15)
A flight departure is counted as "on time" if it departs the ...
Factors that effect OTP
• Air Traffic Clearances
• Passengers
• Weather
• Technical Defects
ON TIME PERFORMANCE
STATISTICS FOR NORTH
AMERICAN REGION
Presented by:
Amalina Zulkifli
North American Region 2013
North American Region 2014
North American Region Jan 2015
ON TIME PERFORMANCE
STATISTICS FOR EUROPE REGION
Presented by:
Akilah Mohd Amir
Europe Region 2013
Europe Region 2014
Europe Region Jan 2015
ON TIME PERFORMANCE STATISTICS
FOR ASIAN-PACIFIC REGION
Presented by:
Masweera Mahadi
Asian Region 2013
Asian Region 2014
Asian Region Jan 2015
Future on time
performance
Presented by:
Reefear Eapear
FUTURE ANALYSIS OF OTP
On Time Performance (%) Schedule Flights
Airlines Jan Feb March Jan Feb March
JAL 86.54 90.23 90.20...
FUTURE ANALYSIS OF OTP
ASIA-PACIFIC REGION
86.53%
84.78%
83.52%
83.52%
82.47%
84.09%
85.12%
13,761
12,454
14,035
11,500
12,000
12,500
13,000
13,5...
North American Region
85.22%
87.83%
86.82% 86.26%
89.10%
87.95%
27,092
24,662
28,569
22,000
23,000
24,000
25,000
26,000
27...
Europe Region
92.72%
92.33%
92.48%92.48% 92.23%
93.22%
94.67%
94.88% 95.12%
13,750
13,010
14,982
12,000
12,500
13,000
13,5...
THE IMPACT BETWEEN AIRLINE OTP
PERFORMANCE, OPERATION MANAGEMENT AND
PASSENGER LOYALTY
Presented by:
Reefear Eapear
Selected Airlines
• Air Asia Group: Established in 1994 and began operations on 18 November 1996
• A low cost carrier (LCC...
AirAsia OTP performance (2012-2014)
Total number of AirAsia passengers (2012-
2014)
Total revenue per year (2010-2014)
The Impact of On-Time Performance for Air Asia
1. On-time performances are not directly giving impact to
the passenger loy...
The Impact of On-Time Performance for Air Asia
2. Operational Operations - all delays will cost from 0.6 to 2.5% of their
...
Percent of Total Delay Minutes
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Air Carrier
Delay 26.3% 25.8% 2...
Summary
-In this case ,OTP doesn’t play an important roles in passengers preference of
airline choices .
-Due to certain f...
Conclusion
Underlying factors of OTP to decline must be investigated and addressed to
ensure the airline will not make mor...
THE IMPACT OF ON TIME PERFORMANCE ON OPERATION MANAGEMENT AND PASSENGER LOYALTY TO AIRLINES.ns
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THE IMPACT OF ON TIME PERFORMANCE ON OPERATION MANAGEMENT AND PASSENGER LOYALTY TO AIRLINES.ns

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Explaining the On Time Performance for airlines and Case study for Air Asia.

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THE IMPACT OF ON TIME PERFORMANCE ON OPERATION MANAGEMENT AND PASSENGER LOYALTY TO AIRLINES.ns

  1. 1. THE IMPACT OF ON TIME PERFORMANCE ON OPERATION MANAGEMENT AND PASSENGER LOYALTY TO AIRLINES. REEFEAR EAPEAR ANAK AJANG MASWEERA BIN MAHADI NOR AKILAH BT MOHD AMIR NORAMALINA ZULKIFLI MUGAMBIGAI D/O MURUGAN UMMI SAKINAH BINTI MOHAMED NOR
  2. 2. Introduction • On time performance commonly referred to as “OTP” is a standard aviation measurement to track the day-to-day performance of an airline. • OTP is also a measurement of our ability not only to operate the planes safely and on time but also to consolidate multiple customer's shipments, accurately load, unload, connect, deconsolidate and deliver them through their extensive flight network to customers on time. • On-time performance refers to the level of success of the service remaining on the published schedule. • On time performance is measured as the number of flights operating on time as a percentage of the number of flights operated on any particular sector.
  3. 3. MEASUREMENT OF OTP Terms Explanation On time departure (D15) A flight departure is counted as "on time" if it departs the gate within 15 minutes of the scheduled departure time shown in the carriers' schedule. On time arrival (A14) A flight arrival is counted as "on time" if it arrived at the gate within 15 minutes of the scheduled arrival time shown in the carriers' schedule. Neither diverted nor cancelled flights count as on time. Cancellation A flight is regarded as a cancellation if it is cancelled or rescheduled less than 7 days prior to its scheduled departure time. On time departure percentage The percentage of on time departures is measured against the number of departures operated on any particular sector. On time arrival percentage The percentage of on time arrivals is measured against the number of arrivals operated on any particular sector. Cancellation percentage The percentage of cancellations is measured against the number of services scheduled on any particular sector.
  4. 4. Factors that effect OTP • Air Traffic Clearances • Passengers • Weather • Technical Defects
  5. 5. ON TIME PERFORMANCE STATISTICS FOR NORTH AMERICAN REGION Presented by: Amalina Zulkifli
  6. 6. North American Region 2013
  7. 7. North American Region 2014
  8. 8. North American Region Jan 2015
  9. 9. ON TIME PERFORMANCE STATISTICS FOR EUROPE REGION Presented by: Akilah Mohd Amir
  10. 10. Europe Region 2013
  11. 11. Europe Region 2014
  12. 12. Europe Region Jan 2015
  13. 13. ON TIME PERFORMANCE STATISTICS FOR ASIAN-PACIFIC REGION Presented by: Masweera Mahadi
  14. 14. Asian Region 2013
  15. 15. Asian Region 2014
  16. 16. Asian Region Jan 2015
  17. 17. Future on time performance Presented by: Reefear Eapear
  18. 18. FUTURE ANALYSIS OF OTP On Time Performance (%) Schedule Flights Airlines Jan Feb March Jan Feb March JAL 86.54 90.23 90.20 22,815 20,521 22,815 Air Asia 86.53 84.78 83.52 13,761 12,454 14,035 Malaysia Airlines 82.51 82.13 82.61 16,262 14,742 16,269 ANA 84.81 89.99 89.14 37,315 33,755 37,459 Alaska Airlines 85.22 87.83 86.82 27,092 24,662 28.569 American Airlines 72.77 72.32 75.25 106,169 96,132 108,991 Delta Air Lines 82.88 77.92 82.33 145,993 133,902 160,398 WestJet 73.05 75.66 84.85 17,011 15,538 17,359 Iberia 92.72 92.33 92.48 13,750 13,010 14,982 Lufthansa 83.49 82.80 86.60 37,217 36,673 42,084 Aeroflot 84.91 89.51 94.39 22,591 20,510 22,943 KLM 81.28 90.53 83.08 17,013 15,862 18,920
  19. 19. FUTURE ANALYSIS OF OTP
  20. 20. ASIA-PACIFIC REGION 86.53% 84.78% 83.52% 83.52% 82.47% 84.09% 85.12% 13,761 12,454 14,035 11,500 12,000 12,500 13,000 13,500 14,000 14,500 January February March April May June July August September October November December 80.00% 81.00% 82.00% 83.00% 84.00% 85.00% 86.00% 87.00% AIR ASIA OTP Schedule Flights otp forecast
  21. 21. North American Region 85.22% 87.83% 86.82% 86.26% 89.10% 87.95% 27,092 24,662 28,569 22,000 23,000 24,000 25,000 26,000 27,000 28,000 29,000 January February March April May June July August September October November December 83.00% 84.00% 85.00% 86.00% 87.00% 88.00% 89.00% 90.00% ALASKA AIRLINES OTP Schedule Flight otp forecast
  22. 22. Europe Region 92.72% 92.33% 92.48%92.48% 92.23% 93.22% 94.67% 94.88% 95.12% 13,750 13,010 14,982 12,000 12,500 13,000 13,500 14,000 14,500 15,000 15,500 January February March April May June July August September October November December 90.50% 91.00% 91.50% 92.00% 92.50% 93.00% 93.50% 94.00% 94.50% 95.00% 95.50% Iberia Airlines OTP Schedule Flight OTP forecast
  23. 23. THE IMPACT BETWEEN AIRLINE OTP PERFORMANCE, OPERATION MANAGEMENT AND PASSENGER LOYALTY Presented by: Reefear Eapear
  24. 24. Selected Airlines • Air Asia Group: Established in 1994 and began operations on 18 November 1996 • A low cost carrier (LCC) • Operates (Hub) in Malaysia, Indonesia, Thailand, India and Philippines • Operates scheduled domestic and international flights to 100 destinations spanning 22 countries. • Main Hub: KLIA2 • Subsidiary: a) AirAsia X b) Indonesia AirAsia c) Thai AirAsia d) AirAsia Philippines e) AirAsia Zest f) AirAsia India • Fleet: 183
  25. 25. AirAsia OTP performance (2012-2014)
  26. 26. Total number of AirAsia passengers (2012- 2014)
  27. 27. Total revenue per year (2010-2014)
  28. 28. The Impact of On-Time Performance for Air Asia 1. On-time performances are not directly giving impact to the passenger loyalty and operational management • The OTP are one of the minor causes for airlines to have better services. • Air Asia was recorded 78.08% on-time performance on 2014 (2013 – 85.66%) but their passenger are rising from 42.61 million passengers on 2013 to 49.5 million passengers on 2014.
  29. 29. The Impact of On-Time Performance for Air Asia 2. Operational Operations - all delays will cost from 0.6 to 2.5% of their operating revenues. • Improved on-time performance can help achieve significant cost savings to operational cost • Set up special teams or organizational units • Research - there is a positive correlation between on time performance and operating profit.
  30. 30. Percent of Total Delay Minutes 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Air Carrier Delay 26.3% 25.8% 28.0% 27.8% 28.5 % 27.8 % 28.0 % 30.4 % 30.1 % 31.9 % 29.4 % 30.2 % Aircraft Arriving Late 30.9% 33.6% 34.2% 37.0% 37.7 % 36.6 % 36.2 % 39.4 % 40.8 % 41.4 % 42.1 % 41.9 % Security Delay 0.3% 0.3% 0.2% 0.3% 0.2% 0.1% 0.1% 0.2% 0.1% 0.1% 0.1% 0.1% National Aviation System Delay 36.5% 33.5% 31.4% 29.4% 27.9 % 30.2 % 30.6 % 25.7 % 24.8 % 22.5 % 24.2 % 23.5 % Extreme Weather 6.1% 6.9% 6.2% 5.6% 5.7% 5.4% 5.0% 4.4% 4.1% 4.0% 4.1% 4.3%
  31. 31. Summary -In this case ,OTP doesn’t play an important roles in passengers preference of airline choices . -Due to certain factors that lead this thing to be happen : Negotiation Fares Strategy Marketing strategy
  32. 32. Conclusion Underlying factors of OTP to decline must be investigated and addressed to ensure the airline will not make more loses that is contributed by OTP. If matters are not being paid attention to it will cause a significance loss to the airline in term of revenue. Among the underlying factors of delays is aircraft delayed due late arrival from a previous flight, weather, airport congestion, air traffic clearance, engineering delay, passengers late show up limited buffer time between aircraft arrival and departure time. the following suggestion should be considered to improve the airlines (OTP).

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