"How to" determine the efficiency and profitability ina projected aviation business, is in fact achallenging work requiring several steps of rationaland logical reasoning. I hereby would like to put forward some guidelines foryou to be taken into account, as a very first step ofan aviation entrepreneur.
1. The factors effecting efficacy, efficiency andprofitability in commercial aviation:
a. Human factor : The spirit of aviation,attitude, interest and loyalty of employees are ofutmost importance. Start with selecting the proper employees among theapplicants consistent with the projected standarts andconditions of the aviation business. The employees are able to boost your business or viceversa. Select your initial management team carefully, amongthe well-known, intelligent and honest persons havingthe capacity of leadership as well. Most of the time, honesty tends to be bilateral. Remember, human have a sense of propriety andrightness that's called "conscience".
b. Environmental factors: Consider the;
I ) meteorological factors and climaticconditions of projected hubs and destinations,
II) tourist industry cross effects onscheduling of projected destinations and timetables.
III) take into account the well-knownhistorical and/or resort values of projected locationsof your intended area of flight operations.
c. Facilities and air assets: Consider the;
I) Types of air assets: Types, quality,speed, range ,roominess and comfort of aviation assets(airplanes, jetliners, commercial jets, helicoptersetc.) in accordance with the projected aviationbusiness and financial resources.
II) Performance and management of Groundoperations. Set forth the standarts for efficient groundoperations to support and soar your projected aviationbusiness. Again, the initial selection for the rightguys to be suited in the teams of management andoperations is of utmost importance.
III) Quality of ATC control facilities ofprojected operations area. Undoubtedly, thanks to the preceding leadership ofEurope and North America, throughout most of thecontinents in today's world, up-to-date and well sophisticated ATC services are enjoyed by theworld aviators.
Nevertheless, in addition to the difficultiesencountered over the underdeveloped air-route sections of the world, the total increasedand almost congested volume of today's air trafficaround the world, decreases the chances for directroute availability, as well as the chances forreaching the company flight plan cruise altitudes.
Any increased ground mile and/or any decreased flightaltitude, increases fuel burn, as well as crossfinancial burdens of aviation companies, and pollutethe world, damage the ozone layer and contribute thegreenhouse effect.
IV) Spirits, attitudes and performances offlight crew (Commanders, i.e. captains in charge,co-captains, first officers, i.e. co-pilots) andflight attendants (cabin crew).
V) Quality and efficacy of training facilitiesfor flight crew, flight attendants, ground operationsand technical personnel.
VI) Quality and efficacy of maintenancefacilities and personnel.
VII) Catering, servicing and additional inputs tothe projected efficiency of commercial aviationbusiness.
2. Determining the level of efficiency and the costindex desired:
To set forth a harmonious cost index; "flight andground safety, speed, time, cost, financial sourcesavailable" must be taken into account.
There is one condition unforgettable here; Never forget! ; "the speed" is the core (heart) of"aviation business", nevertheless "flight safety" precedes.
3. Possible difficulties and/or obstacles to beencountered on the quest of desired efficiency. Consider the; a. Unexpected crisis/crises, significant events orradical changes of status quo, unstable or crucialtimes or state of affairs in the regions of operationsarea or in the world theatre (as in September the 11th2001 attack to WTC/NY).
b. Expected or unexpected financial crises in theCountry/ies where the entrepreneur/s is/are based.(asin the global recession of 2000-2001-....)
c. Future problems those may arise due tomismanagement, mishandling of company personnel andassets and possible recovery plans thereof.
d. Fluctuations in the worldwide and regional fuelprices. Unexpected hikes due to political crises.
e. Taxes and other burdens.
f. Possible future unfortunateaccidents/incidents/unlawful interference occurencesin your aviation business and mitigating the effectstherefrom.
4.Proceeding to the targeted efficiency.
Having considered all of the above mentionedparticulars, you can proceed to your targetedefficiency in your business, with your well selected; flight, cabin and ground crew, maintenance personneland again well selected, honest, loyal and in-focusmanagement personnel.
There is a simple but important point that you shouldremember as the heart of aviation business; "have your personnel believe to the honesty andneutrality of your selected management team to supportthem". I would even suggest you, in the proper upcomingphases of your ongoing business and if you feelcomfortable, to let your personnel select their ownmanagement team with elections or polls. Than believeme every personnel from top to buttom shall be carefulabout every single actions of behavior, flightmaneuver, speech, attitude whatever you name it, thatwould cost a penny more to their company's aviationbusiness. Remember; "aviation, is expensive and costly. However,careful attentions to simple details, attentiveapproaches and attitudes, shall sum up big gains".
Indeed, life is hiddens in details. Simple motivationdetails provided to your aviation personnel comebounce back as in two-fold gains. Believe me and trythis out. You won't regret.
In the quest for targeted efficiency, another veryimported point is the deligation of the power of themanagement.
"Deligate your power, but still stay centralized." This means; deligate your power of management on flight and ground operations, maintenance etc. Keep them very well coordinated under the superiormanagement of one very well selected chief executiveofficer. As the president you shall be always at the top withyour board. Monitor and check the performance of yourbusiness. Regular or irregular checks shall work-outfine. Arrange, re-arrange your team when necessary.
Think about this: "Flying the aircraft efficiently andin harmony" is the main and ultimate reason of yourbusiness. Then, why not to select the top executiveofficer under your CEO among your seasoned pilots asthe CEOTAO (Chief Executive Officer of Total AviationOperations) to manage and control your total aviationactivities in one hand. While your CEO and/or the chief of board, shouldpreferably be an expert of management and/or finance.
Well, as far as the possible designs and schemas ofprojected aviation organizations are concerned, thosecan be the topic of another article.
Captain Savas UskentCommander Pilot
http://www.geocities.com/uskent/index.html
