Operational Performance Management
Published on Jun 13, 2020
Jamair was founded in September
200X and is one of a growing number of low-cost airlines in the country of
Bolognia. Jamair’s strategy is to operate
as a low-cost, high efficiency airline, and it does this by:
Operating mostly in secondary cities to reduce landing costs.
Using only one type of aircraft in
order to reduce maintenance and operational costs. These planes are leased
rather than bought outright.
Having only one category of seat class.
Having no pre-allocated seats or in-flight
Focusing on e-commerce with customers both booking tickets
and checking in for flights
The airline was given an ‘on time arrival’ ranking of
seventh best by the country’s aviation authority, who rank all 50 of the country’s airlines based on the
number of flights which arrive on time at their destinations. 48 Jamair
flights were cancelled in 2013 compared
to 35 in 2012. This increase was due to an increase in the staff absentee rate
at Jamair from 3 days per staff member per year to 4·5 days.
The average ‘ground turnaround time’ for airlines in
Bolognia is 50 minutes, meaning that, on average,
planes are on the ground for cleaning,
refuelling, etc. for 50 minutes before departing again. Customer satisfaction
surveys have shown that 85% of customers
are happy with the standard
of cleanliness on Jamair’s planes.
The number of passengers carried by the airline has
grown from 300,000 passengers on a total of 3,428 flights in 2007 to 920,000 passengers on 7,650
flights in 2013. The overall growth of
the airline has
been helped by the
limited route licensing policy of the Bolognia's government, which has given
Jamair almost monopoly status on some of its routes. However, the
government is now set to change this policy with almost immediate effect, and
it has become more important
than ever to monitor performance effectively.
1. For each perspective of the balanced scorecard,
identify one goal together with a corresponding performance measure which could
be used by Jamair to measure the company’s performance. The goals and
measures should be specifically relevant
to Jamair. For each pair of goals and measures, explain why you have chosen
Ref: Specimen paper ACCA