air travel
Task 1 Conduct desk research
Consider the air travel industry’s environment, conduct research on the main forces in the macro environment facing air travel industry companies. Based on your research prepare a report. Your report should cover the following information
a)Background of the research
Industry Specific Metrics
Aircraft Utilization: The most basic metric for an airline is aircraft utilization. This is a measure of the average number of hours that each aircraft is flying in each 24 hour period. Planes that are flying are probably making money. Planes that are sitting on the ramp, whether undergoing maintenance, suffering delays due to weather or waiting for crews to fly them are not making money. Utilization is a statistic that varies from carrier to carrier and is normally considered a closely guarded corporate trade secret and is not tracked by government. Part of the "art" in running an airline is keeping utilization high.
Load Factor: The next most important metric for an airline is the Load Factor, which measures the percentage of available seats that are filled during a specific period. In 2007 load factors for major airlines ranged from 72-84%[citation needed]. In 2008 U.S. airlines averaged a Load Factor of 79.74% on domestic flights and 78.74% on International flights [1]
Available Seat-Miles (ASM): The ASM metric is used to track seat supply among airlines. ASM is equal to the number of available seats times the number of miles flown.
Revenue Passenger-Miles (RPM): RPM measures the number of seat miles flown for which the company earned revenues. That is, RPM equals the number of filled seats times the number of miles flown.
Yield: The amount of revenue earned per RPM is known as the airline 's yield. This metric is generally expressed in cents and ranged from 9.8-13.1 cents for the major airlines in the first half of 2007[citation needed].
Fuel Costs: Most factors that affect the profitability of airlines are fairly stable, except for
Consider the air travel industry’s environment, conduct research on the main forces in the macro environment facing air travel industry companies. Based on your research prepare a report. Your report should cover the following information
a)Background of the research
Industry Specific Metrics
Aircraft Utilization: The most basic metric for an airline is aircraft utilization. This is a measure of the average number of hours that each aircraft is flying in each 24 hour period. Planes that are flying are probably making money. Planes that are sitting on the ramp, whether undergoing maintenance, suffering delays due to weather or waiting for crews to fly them are not making money. Utilization is a statistic that varies from carrier to carrier and is normally considered a closely guarded corporate trade secret and is not tracked by government. Part of the "art" in running an airline is keeping utilization high.
Load Factor: The next most important metric for an airline is the Load Factor, which measures the percentage of available seats that are filled during a specific period. In 2007 load factors for major airlines ranged from 72-84%[citation needed]. In 2008 U.S. airlines averaged a Load Factor of 79.74% on domestic flights and 78.74% on International flights [1]
Available Seat-Miles (ASM): The ASM metric is used to track seat supply among airlines. ASM is equal to the number of available seats times the number of miles flown.
Revenue Passenger-Miles (RPM): RPM measures the number of seat miles flown for which the company earned revenues. That is, RPM equals the number of filled seats times the number of miles flown.
Yield: The amount of revenue earned per RPM is known as the airline 's yield. This metric is generally expressed in cents and ranged from 9.8-13.1 cents for the major airlines in the first half of 2007[citation needed].
Fuel Costs: Most factors that affect the profitability of airlines are fairly stable, except for
References: http://www.research.rmutt.ac.th http://www.valueairlines.com/privacy.php#sthash.T61klxip.dpuf