Operational performance (or operational reliability) is about running an airline like a well-oiled machine. Pun intended. It’s about on-time performance and completion rates. It’s about reducing involuntary denied boardings and the rate of mishandled bags. It’s ensuring that continuous improvements and efficiencies are always in motion. A smoothly run airline enhances customer perception, satisfaction, and loyalty. Naturally, fewer operational hiccups means better cost efficiency and overall financials.
Tim Porter, a director and airline expert at Perficient, said, “Operational performance is a big deal to airlines. They invest billions in this because the cost of irregular operations is huge from both and economic and customer satisfaction point of view. Airlines have invested billions to improve recovery from irregular operations. They are now looking at ways to improve network reliability and drive down costs from the process.”
Speaking on the company’s latest earnings call, United Airlines CEO Oscar Munoz said, “We ran and continue to run a great operation and that helps immensely with regards to our cost…running better is running cheaper.”
Delta Airlines believes operational reliability is one of its strategic advantages. The company calls itself “American’s best-run airline, consistently delivering industry-leading, operational results and driving further improvement and efficiencies through innovation.”
Perficient published a new guide that focuses on the airline industry – the companies that operate air transport networks. It looks at the current and future state of the industry. Specifically, it discusses some of the initiatives on which airlines are focusing in the hopes of driving growth and value for their businesses, as well as their customers, employees, partners, and shareholders.