EFFICACY, EFFICIENCY AND PROFITABILITY IN AVIATION
BUSINESS
“How to” determine the efficiency and profitability in
a projected aviation business, is in fact a
challenging work requiring several steps of rational
and logical reasoning.
I hereby would like to put forward some guidelines for
you to be taken into account, as a very first step of
an aviation entrepreneur.
1. The factors effecting efficacy, efficiency and
profitability in commercial aviation:
a. Human factor : The spirit of aviation,
attitude, interest and loyalty of employees are of
utmost importance.
Start with selecting the proper employees among the
applicants consistent with the projected standarts and
conditions of the aviation business.
The employees are able to boost your business or vice
versa.
Select your initial management team carefully, among
the well-known, intelligent and honest persons having
the capacity of leadership as well.
Most of the time, honesty tends to be bilateral.
Remember, human have a sense of propriety and
rightness that’s called “conscience”.
b. Environmental factors: Consider the;
I ) meteorological factors and climatic
conditions of projected hubs and destinations,
II) tourist industry cross effects on
scheduling of projected destinations and timetables.
III) take into account the well-known
historical and/or resort values of projected locations
of your intended area of flight operations.
c. Facilities and air assets:
Consider the;
I) Types of air assets: Types, quality,
speed, range ,roominess and comfort of aviation assets
(airplanes, jetliners, commercial jets, helicopters
etc.) in accordance with the projected aviation
business and financial resources.
II) Performance and management of Ground
operations.
Set forth the standarts for efficient ground
operations to support and soar your projected aviation
business. Again, the initial selection for the right
guys to be suited in the teams of management and
operations is of utmost importance.
III) Quality of ATC control facilities of
projected operations area.
Undoubtedly, thanks to the preceding leadership of
Europe and North America, throughout most of the
continents in today’s world, up-to-date and
well sophisticated ATC services are enjoyed by the
world aviators.
Nevertheless, in addition to the difficulties
encountered over the underdeveloped
air-route sections of the world, the total increased
and almost congested volume of today’s air traffic
around the world, decreases the chances for direct
route availability, as well as the chances for
reaching the company flight plan cruise altitudes.
Any increased ground mile and/or any decreased flight
altitude, increases fuel burn, as well as cross
financial burdens of aviation companies, and pollute
the world, damage the ozone layer and contribute the
greenhouse effect.
IV) Spirits, attitudes and performances of
flight crew (Commanders, i.e. captains in charge,
co-captains, first officers, i.e. co-pilots) and
flight attendants (cabin crew).
V) Quality and efficacy of training facilities
for flight crew, flight attendants, ground operations
and technical personnel.
VI) Quality and efficacy of maintenance
facilities and personnel.
VII) Catering, servicing and additional inputs to
the projected efficiency of commercial aviation
business.
2. Determining the level of efficiency and the cost
index desired:
To set forth a harmonious cost index; “flight and
ground safety, speed, time, cost, financial sources
available” must be taken into account.
There is one condition unforgettable here;
Never forget! ; “the speed” is the core (heart) of
“aviation business”,
nevertheless “flight safety” precedes.
3. Possible difficulties and/or obstacles to be
encountered on the quest of desired efficiency.
Consider the;
a. Unexpected crisis/crises, significant events or
radical changes of status quo, unstable or crucial
times or state of affairs in the regions of operations
area or in the world theatre (as in September the 11th
2001 attack to WTC/NY).
b. Expected or unexpected financial crises in the
Country/ies where the entrepreneur/s is/are based.(as
in the global recession of 2000-2001-….)
c. Future problems those may arise due to
mismanagement, mishandling of company personnel and
assets and possible recovery plans thereof.
d. Fluctuations in the worldwide and regional fuel
prices.
Unexpected hikes due to political crises.
e. Taxes and other burdens.
f. Possible future unfortunate
accidents/incidents/unlawful interference occurences
in your aviation business and mitigating the effects
therefrom.
4.Proceeding to the targeted efficiency.
Having considered all of the above mentioned
particulars, you can proceed to your targeted
efficiency in your business, with your well selected;
flight, cabin and ground crew, maintenance personnel
and again well selected, honest, loyal and in-focus
management personnel.
There is a simple but important point that you should
remember as the heart of aviation business;
“have your personnel believe to the honesty and
neutrality of your selected management team to support
them”.
I would even suggest you, in the proper upcoming
phases of your ongoing business and if you feel
comfortable, to let your personnel select their own
management team with elections or polls. Than believe
me every personnel from top to buttom shall be careful
about every single actions of behavior, flight
maneuver, speech, attitude whatever you name it, that
would cost a penny more to their company’s aviation
business.
Remember; “aviation, is expensive and costly. However,
careful attentions to simple details, attentive
approaches and attitudes, shall sum up big gains”.
Indeed, life is hiddens in details. Simple motivation
details provided to your aviation personnel come
bounce back as in two-fold gains. Believe me and try
this out. You won’t regret.
In the quest for targeted efficiency, another very
imported point is the deligation of the power of the
management.
“Deligate your power, but still stay centralized.”
This means; deligate your power of management on
flight and ground operations, maintenance etc.
Keep them very well coordinated under the superior
management of one very well selected chief executive
officer.
As the president you shall be always at the top with
your board. Monitor and check the performance of your
business. Regular or irregular checks shall work-out
fine. Arrange, re-arrange your team when necessary.
Think about this: “Flying the aircraft efficiently and
in harmony” is the main and ultimate reason of your
business. Then, why not to select the top executive
officer under your CEO among your seasoned pilots as
the CEOTAO (Chief Executive Officer of Total Aviation
Operations) to manage and control your total aviation
activities in one hand.
While your CEO and/or the chief of board, should
preferably be an expert of management and/or finance.
Well, as far as the possible designs and schemas of
projected aviation organizations are concerned, those
can be the topic of another article.