Wednesday, 26 January 2022

Why Airline Economics is Still Not Easy?

 


This image posted recently on LinkedIn attracted my attention and I felt prompted to write the following comment: 

There are lots of untold stories beyond these figures on both passenger and cost sides, lots of broken links between strategy and operations, no knowledge of interdependencies and interactions. This has been the case for decades.

Until these kinds of insights become an integral part of practice, there will be no chance of performance improvements and no control of cost and quality. This can result in rise of indebtedness related to the core business.

Showing any future profit in such circumstances is mostly the result of financial gaming, usually made at the expense of human values.

It’s time to reinvent the decision making!