One of the most important measurements for airlines is their on-time performance. A late flight can have severe consequences, particularly for time-sensitive business travelers. Moreover, up to 30% of passengers connect to another flight, which makes a delay even more debilitating. Clearly, an airline should be measuring on-time performance to improve its service and ensure a smooth travel experience for its customers.
On-time performance is measured by comparing services to their schedules. A lateness threshold is set, and a scale of minutes is used to measure how long the service is delayed. Delay minutes are often calculated by multiplying the number of passengers on board the transport vehicle by the number of minutes.
On-time performance can help airlines gain customers and improve their service. Delays cost the airlines time and resources. Not only do passengers lose money, but airline crews spend valuable time waiting for flights to depart. Delays can also result from external factors, such as poor airport gate locations, industrial disputes, or long immigration queues. Hence, airlines need to optimize their schedules to avoid delays.
On-time performance can be difficult to measure, but it’s a crucial metric to keep an eye on. It is a key performance indicator (KPI) that can differentiate an airline from the competition. On-time performance measures the percentage of flights arriving or departing on schedule. If the on-time performance is good, it gives the company time to recover from any delays. A low percentage will force airlines to add extra margins to their flight schedules to compensate for a late flight.
It’s important to note that if an airline’s on-time performance improves, they will attract more passengers and reduce the risk of reputation damage. In addition to attracting more passengers, a good on-time performance also improves the airport’s credibility and reputation. The average cost of a one-minute delay is about 100 euros, so it’s critical to achieve high-level on-time performance.
Besides customer satisfaction, good OTP can also help airlines maintain their competitive advantage and reduce costs. For example, airlines that are 90 percent on-time have a higher customer satisfaction rating than those that don’t. Moreover, good OTP will help them control costs, as they will be able to use their aircraft and employees more efficiently. Lastly, good on-time performance will improve employee morale and company culture. It also enhances employee work-life balance.
Maintaining good OTP requires many processes and people working together. These processes are highly integrated and must be in constant communication. Moreover, there should be clear communication between the operational and scheduling teams. If both departments are not communicating effectively, the results will reflect this. In addition, the airline should reward employees who meet or exceed their targets.
Improving airline on-time performance is a high-impact undertaking. It’s also a challenging task, but the rewards outweigh the effort. Airlines can’t compete with other airlines if they’re running behind schedule.