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| EFFICACY, EFFICIENCY AND PROFITABILITY IN COMMERCIAL AVIATION "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 provided to 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, now, 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 whenever you feel comfortable, to let your personnel select their own management team with elections or polls. Then, believe me every personnel from top to buttom shall be careful about their actions and behaviors, flight maneuvers, speeches, attitudes 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 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. Undoubtedly, as the president, you shall always keep 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. Captain Savas Uskent, Airline Captain and Aviation Author A Commander Pilot (Captain In Charge) in one of the flag carrier airlines of the old "spaceship the earth". Holder of FAA , TCAA ATP&CFI&IP licences. Regarding the large category transport planes, type rated on: Airbus-310, Boeing-737 / 800, Boeing -737/400 and 500, British Airspace BAe-146/100 and 70 (Avrojet), Challenger 601-3A, Learjet-60, Learjet-55, Learjet-35, Caravelle SE-210, Grumman's S-2E. Having extensive worldwide experience in all aspects of aviation, he also served as an international corporate jet flight dept mgr, senior and chief pilot those were all on top of a naval aviation career, as a commander, test, flight and tactical instructor and check pilot. College of Journalism enhanced his writing proficiency. |
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