Benchmarking as a tool for strategic aviation management

24 May 2016
Improving efficiency of the transport industry
The formula used to measure airline performance could be used to analyse the sector's efficiency and, therefore, improve performance in any industry.

Research highlights: Benchmarking as a tool for strategic aviation management

Professor Rico Merkert's research is focused on helping companies and entire supply chains develop strategies and make decisions based on evidence and benchmark analysis. The aim is to enhance their value proposition, competitive advantage and ultimately improve their profitability.

The research ranked Qantas in the top 20 of 150 airlines using a new formula to measure efficiency based on passengers per number of aircraft, seat kilometres flown, fleet, staffing levels, perceived services levels and profitability.

Professor Merkert says the formula can be used to analyse the efficiency of any industry and therefore improve its performance.

Researchers from the Institute of Transport and Logistics Studies have already examined rail, bus and airport services.

Published work

Merkert R and Pearson J 2015 'A Non-parametric Efficiency Measure Incorporating Perceived Airline Service Levels and Profitability', Journal of Transport Economics and Policy, vol.49:2, pp. 261-75.

Merkert R and Assaf AG 2015 'Using DEA models to jointly estimate service quality perception and profitability - Evidence from international airports', Transportation Research Part A: Policy and Practice, vol.75, pp. 42-50.