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Thursday, 17 October 2013

Benchmarking of Airports Key performance Indicators

Benchmarking of airports-Key Performance Indicators at Airports



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Benchmarking of airports-Key Performance Indicators at Airports

Benchmarking evaluates the operational performance of an airport and compares it with global standards for achieving better quality and efficiency. It is a statistical and accounting process that is used to monitor and compare airport economic, operational and service performance. Major benchmarking areas include quality of airport facilities, terminal facility and traffic activity.

Key issues answered through this analysis:
  1. What are the key performance indicators at airports?
  2. Explain the matrix of key airport benchmarking areas.

Airport benchmarking

Airport benchmarking is a component of an airport's strategic planning process. It is a statistical and accounting process that is used to monitor and compare the economic, operational and service performance of an airport. Benchmarking assesses the implementation of an airport's performance on various parameters to measure the effectiveness of discrete airport functions and identifies best practices that could be incorporated into organisational procedures to increase efficiency, quality and customer satisfaction at airports.
The key performance indicators at any airport include the following broad parameters:
1.     Check-in
2.     Security check
3.     Terminal facilities
4.     Experience of arriving at the airport
5.     Experience while departing the airport

1. Check-in:

  • Wait time at check-in
  • Efficiency of check-in
  • Courtesy/professionalism of check-in staff

2. Security check:

  • Wait time at security
  • Efficiency of security
  • Courtesy/helpfulness of security staff
  • Ability of security process to make one feel safe

3. Terminal facilities:

  • Signs and directions
  • Flight information displays
  • Quality and variety of food & beverages
  • Quality and variety of retail
  • Accessibility of gate area

4. Experience of arriving at an airport:

  • Appearance of gate area and terminal
  • Signage leading to baggage claim and ground transportation
  • Information displays
  • Restroom facilities
  • Airport information staff
  • Courtesy/professionalism of staff

5. Experience while departing an airport:

  • Ease of finding a means of transportation
  • Facilities at airport for transportation

Matrix of key airport performance benchmarks

1. Traffic activity

  • Total passengers (originating and connecting)
  • Total cargo (mail and freight)
  • Total operations (commercial, commuter and military)

2. Physical activities

  • Number of airports
  • Land area, runways, taxiways, apron
  • Terminals, concourses, gates
  • Ticket counter, security and baggage
  • Parking spaces

3. Aeronautical charges - Airfield

  • Landing and take-off fees
  • Aircraft apron, parking and gate fees
  • Aircraft environmental fees
  • Aircraft fuelling fees and other ground handling fees

4. Airfield, terminal passenger and landside transportation processing efficiency

  • Runway, taxiway, airfield design, layout and aircraft processing efficiency
  • Airfield terminal area (ramp and gate areas) aircraft processing efficiency
  • Terminal passenger flows and processing efficiency
  • Terminal curb and landside processing efficiency

5. Aeronautical related charges - Terminal

  • Ticket counter space
  • Boarding gates and loading bridges
  • Administrative office space
  • Flight kitchens and services
  • Baggage processing/handling
  • Passenger lounges

6. Non-aeronautical concession revenues - Terminal

  • Retail and specialty retail
  • Food and beverages
  • News and gifts
  • Duty-free shopping
  • Advertising
  • Hotels

7. Non-aeronautical concession revenues - Landside

  • Parking
  • Rental cars
  • Taxis, buses, limousines
  • Rail and train stations
  • Other commercial vehicles
  • Hotels, conference centres, office buildings
  • Shopping centres

8. Operating and maintenance costs

  • Personnel costs (salaries and benefits)
  • Soft costs and outsourcing
  • Suppliers and materials
  • Repairs and maintenance
  • Communication and utilities costs
  • Law enforcement and fire fighting
  • Other operating costs

9. Quality of community airline service

  • Number of airlines
  • Airline routes and frequencies
  • Aircraft types and fleet mix
  • Airline competition and airfares

10. Other financials

  • Other non-operating revenues
  • Cash flow and liquidity
  • Debt (bonds and loans)
  • Return on equity and assets
  • Capital expenditure and costs (actual and projected)

11. Quality of airport facilities and services

  • Quality of experience coming to airport
  • Quality of passengers processing (check-in, gate, customs, and immigration and security)
  • Quality of airport commercial services
  • Quality of airport physical facilities

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