ABSTRACT

In very essence, operational disruptions are the results of strategies that fail to match operational capabilities and leave little or no space for soothing the effects of internal inefficiencies and unpredictable events. How seriously can they affect airline financial results? This important business question cannot be answered by looking at traditional management reports. As we have seen so far, the narrow approach to disruptions seen mostly as delays and cancellations proved ineffective in mitigating their negative impact on airlines and other parties involved in the process. Airlines that focus on delays as the only aspect of disrupted operations are missing important element of business information – the full effects of operational changes on airline operating costs and revenue.