Comparitive Analysis on Global Air Carriers

> Comparing the Key Performance Indicators (KPIs) across airlines globally is essential for understanding industry benchmarks and trends. The comparison usually involves both legacy/full-service carriers (e.g., Emirates, Delta, Singapore Airlines) and low-cost carriers (LCCs) (e.g., Ryanair, Southwest Airlines). Here’s a detailed look at how these KPIs typically compare across different airlines, segmented by the most relevant operational, financial, customer experience, and other metrics.

# On-Time Performance (OTP)
> Global Average: The global airline industry standard for on-time performance is typically around 80-85%.

## Top Airlines:
  - Delta Air Lines (US): ~86-90%
  - Japan Airlines (Japan): ~88-91%
  - Qatar Airways (Qatar): ~85-87%

## Low-Cost Carriers:
  - Ryanair (Europe): ~92-95% (known for fast turnarounds)
  - Southwest Airlines (US): ~80-82%
  - AirAsia (Asia): ~85-88%
    Legacy carriers often face more complexities due to international routes and airport congestion, which can slightly reduce OTP compared to low-cost carriers.

# Load Factor  
> Global Average: Load factors typically range from 75-85% for full-service carriers and 85-95% for low-cost carriers.

## Top Airlines:
  - Qatar Airways: ~80-83%
  - Emirates: ~78-82%
  - Delta Air Lines: ~85-88%
  
## Low-Cost Carriers:
  - Ryanair: ~95-97%
  - Southwest Airlines: ~85-90%
  - EasyJet: ~88-91%

Low-cost carriers generally have higher load factors due to their pricing strategies and more frequent short-haul flights.

# Revenue per Available Seat Mile (RASM)
> Global Average:
  - Full-service carriers: 10-15 cents per ASM (varies by region and class of service).
  - Low-cost carriers: 7-10 cents per ASM.

## Top Airlines:
  - Singapore Airlines: ~12-14 cents/ASM (due to premium services).
  - Delta Air Lines: ~14-15 cents/ASM.
  - Ryanair: ~7-8 cents/ASM.
  - Southwest Airlines: ~9-10 cents/ASM.

Low-cost carriers tend to have lower RASM due to less revenue per passenger but often make up for it with high volume and ancillary revenue.

# Cost per Available Seat Mile (CASM)
> Global Average: Full-service carriers typically range from 10-15 cents per ASM, while low-cost carriers are in the 5-8 cents range.
## Top Airlines:
  - Qatar Airways: ~12-14 cents/ASM.
  - Delta Air Lines: ~13-15 cents/ASM.
  - Ryanair: ~4-6 cents/ASM.
  - Southwest Airlines: ~8-9 cents/ASM.

Low-cost carriers consistently have lower CASM due to their no-frills service models, fuel efficiency, and high seat density.

# Yield (Revenue per Passenger Kilometer)
> Global Average:

## Full-service carriers: 10-20 US cents per Revenue Passenger Kilometer (RPK).
  - Low-cost carriers: 6-10 US cents per RPK.

## Top Airlines:
  - Singapore Airlines: ~18-20 cents/RPK (due to premium services).
  - Qatar Airways: ~12-14 cents/RPK.
  - Ryanair: ~7-8 cents/RPK.
  - Southwest Airlines: ~9-10 cents/RPK.

Yield is generally higher for full-service airlines due to the inclusion of business and first-class services, while low-cost carriers focus on price-sensitive markets.

# Ancillary Revenue
> Global Average:
  - Full-service carriers: Typically generate 10-15% of total revenue from ancillary services.
  - Low-cost carriers: Can generate 30-40% of their revenue from ancillaries.

## Top Airlines:
  - Ryanair: ~35-40% of total revenue from ancillaries (baggage fees, seat selection, onboard sales).
  - EasyJet: ~20-25%.
  - Emirates: ~10-12%.

Ancillary revenue has become a key profit driver for low-cost carriers, while full-service carriers focus on premium services and loyalty programs.

# Net Promoter Score (NPS)
> Global Average:

  - Full-service airlines typically have an NPS of 30-50.
  - Low-cost airlines range from 10-30.
  - Top Airlines:
  - Qatar Airways: ~50-55.
  - Singapore Airlines: ~55-60.
  - Emirates: ~45-50.
  - Ryanair: ~10-15 (lower due to fewer frills).
  - Southwest Airlines: ~40-45.

Full-service airlines generally score higher on NPS due to their focus on customer service, while low-cost carriers often have lower scores due to the no-frills experience.

# Fuel Efficiency
> Global Average:

  - Full-service carriers: 30-40 liters per 100 revenue passenger kilometers (RPK).
  - Low-cost carriers: 20-30 liters per 100 RPK.
  - Top Airlines:
  - Ryanair: ~25 liters/100 RPK (one of the most fuel-efficient due to newer fleet).
  - Delta Air Lines: ~33-35 liters/100 RPK.
  - Qatar Airways: ~32-34 liters/100 RPK.

Low-cost carriers, with their newer, more fuel-efficient aircraft and higher load factors, often lead in fuel efficiency.

# Employee Productivity (Revenue per Employee)
> Global Average:

  - Full-service carriers: ~$200,000 - $300,000 per employee annually.
  - Low-cost carriers: ~$300,000 - $500,000 per employee annually.
  - Top Airlines:
  - Ryanair: €500,000 ($550,000) per employee.
  - Southwest Airlines: ~$400,000 per employee.
  - Qatar Airways: ~$250,000 per employee.

Low-cost carriers often lead in employee productivity due to streamlined operations, higher flight frequency, and lean staffing models.

# Baggage Mishandling Rate
> Global Average:

  - Industry-wide: 5.57 mishandled bags per 1,000 passengers.
  - Top Airlines:
  - Delta Air Lines: ~1.82 per 1,000 passengers.
  - Qatar Airways: ~2.75 per 1,000 passengers.
  - Ryanair: ~3.5 per 1,000 passengers.
  - Southwest Airlines: ~2.45 per 1,000 passengers.

Full-service airlines, with more complex baggage handling due to international travel and multiple connections, generally report slightly higher mishandling rates compared to low-cost carriers.

# Environmental Efficiency (CO2 Emissions per Passenger Kilometer)
> Global Average:

  - Full-service carriers: 90-120 grams of CO2 per passenger kilometer.
  - Low-cost carriers: 60-90 grams of CO2 per passenger kilometer.
  - Top Airlines:
  - Ryanair: ~67 grams/passenger kilometer (among the lowest in Europe).
  - Delta Air Lines: ~100-110 grams/passenger kilometer.
  - Qatar Airways: ~105-110 grams/passenger kilometer.

Low-cost carriers often lead due to fuel-efficient fleet management and higher load factors, while full-service carriers may have older fleets and longer-haul operations.

# Customer Satisfaction (CSAT)
> Global Average:

  - Full-service carriers: 75-85% customer satisfaction.
  - Low-cost carriers: 60-75%.
  - Top Airlines:
  - Singapore Airlines: ~90%.
  - Qatar Airways: ~85%.
  - Southwest Airlines: ~80%.
  - Ryanair: ~60-65%.

Full-service carriers lead in customer satisfaction due to their focus on premium services, while low-cost carriers rank lower due to their bare-bones, cost-efficient service models.

# Summary of Trends:

  - Full-Service Carriers excel in customer experience, premium revenue, and loyalty but may lag behind in operational costs, fuel efficiency, and ancillary revenue generation.
  - Low-Cost Carriers dominate in cost-efficiency, employee productivity, load factors, and fuel efficiency, but tend to have lower NPS and customer satisfaction scores.

This comparison highlights the trade-offs between business models in the airline industry, with full-service carriers focusing on premium services and customer satisfaction

List of KPIs for a Finance department in Airline industry

For an airline finance department, key performance indicators (KPIs) include:

1. **Revenue per Available Seat Mile (RASM)**: Measures the revenue generated per mile flown per seat, indicating overall efficiency and profitability.

2. **Cost per Available Seat Mile (CASM)**: Tracks the cost to operate each seat mile, crucial for understanding cost efficiency.

3. **Operating Margin**: The difference between operating revenue and operating expenses, expressed as a percentage of revenue.

4. **Profit Margin**: Net income as a percentage of total revenue, reflecting overall profitability.

5. **Load Factor**: The percentage of available seating capacity that is filled with passengers, influencing revenue and cost efficiency.

6. **Return on Assets (ROA)**: Net income divided by total assets, measuring how effectively the airline uses its assets to generate profit.

7. **Return on Equity (ROE)**: Net income divided by shareholder equity, indicating the return generated on shareholders’ investments.

8. **Debt-to-Equity Ratio**: The ratio of total debt to total equity, assessing the airline’s financial leverage and risk.

9. **Cash Flow from Operations**: Cash generated from core business operations, important for assessing liquidity and operational health.

10. **Passenger Yield**: Average revenue per passenger mile, reflecting pricing strategy and revenue management effectiveness.

These KPIs help monitor financial health, profitability, and operational efficiency.

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Tableau

Tableau is a business intelligence (BI) and data visualization software platform. It allows users to connect to a variety of data sources, including spreadsheets, databases, and cloud-based data warehouses. Tableau then allows users to create interactive visualizations of their data.

Tableau is a popular BI tool among businesses of all sizes. It is used by businesses to make better decisions, improve operations, and communicate insights to stakeholders.

Here are some of the features of Tableau:

• Data connectivity: Tableau can connect to a variety of data sources, including spreadsheets, databases, and cloud-based data warehouses.
• Data visualization: Tableau allows users to create interactive visualizations of their data. These visualizations can be used to explore data, identify trends, and communicate insights.
• Dashboards: Tableau can be used to create dashboards that display key metrics and insights. Dashboards can be shared with stakeholders to keep them informed of the latest data.
• Collaboration: Tableau allows users to collaborate on data visualizations. This can be done by sharing dashboards or by working on the same visualization together.
• Extensibility: Tableau is extensible with a variety of add-ons and connectors. This allows users to customize Tableau to meet their specific needs.

Tableau is a powerful BI tool that can be used to make better decisions, improve operations, and communicate insights to stakeholders. If you are looking for a BI tool, Tableau is a good option to consider.

Here are some of the benefits of using Tableau:

• Ease of use: Tableau is a user-friendly BI tool that can be used by people with no prior experience in data visualization.
• Powerful features: Tableau offers a wide range of features for data visualization, including dashboards, collaboration, and extensibility.
• Scalability: Tableau can be used to handle large datasets and complex visualizations.
• Cost-effectiveness: Tableau is a cost-effective BI tool that is available in a variety of pricing plans.

If you are considering using Tableau, I recommend that you do the following:

• Try the free trial: Tableau offers a free trial that you can use to test the software.
• Read the documentation: Tableau provides comprehensive documentation that you can use to learn how to use the software.
• Take a training course: Tableau offers a variety of training courses that you can take to learn how to use the software.
• Join the community: Tableau has a large and active community of users who can help you with questions and problems.

Microsoft Power BI

Microsoft Power BI is a business intelligence (BI) suite that helps you analyze data and share insights. It provides a variety of tools for data visualization, reporting, and dashboarding. Power BI can be used to connect to a variety of data sources, including cloud-based data warehouses, on-premises databases, and spreadsheets.

Power BI is a popular BI tool among businesses of all sizes. It is used by businesses to make better decisions, improve operations, and communicate insights to stakeholders.

Here are some of the features of Power BI:

• Data connectivity: Power BI can connect to a variety of data sources, including cloud-based data warehouses, on-premises databases, and spreadsheets.
• Data visualization: Power BI provides a variety of tools for data visualization, including charts, graphs, and maps. These visualizations can be used to explore data, identify trends, and communicate insights.
• Reporting: Power BI can be used to create reports that summarize data and present it in a clear and concise way. Reports can be shared with stakeholders to keep them informed of the latest data.
• Dashboards: Power BI can be used to create dashboards that display key metrics and insights. Dashboards can be customized to meet the specific needs of the user.
• Collaboration: Power BI allows users to collaborate on data visualizations and reports. This can be done by sharing dashboards or by working on the same visualization together.
• Extensibility: Power BI is extensible with a variety of add-ons and connectors. This allows users to customize Power BI to meet their specific needs.

Power BI is a powerful BI tool that can be used to make better decisions, improve operations, and communicate insights to stakeholders. If you are looking for a BI tool, Power BI is a good option to consider.

Here are some of the benefits of using Power BI:

• Ease of use: Power BI is a user-friendly BI tool that can be used by people with no prior experience in data visualization.
• Powerful features: Power BI offers a wide range of features for data visualization, reporting, and dashboarding.
• Scalability: Power BI can be used to handle large datasets and complex visualizations.
• Cost-effectiveness: Power BI is a cost-effective BI tool that is available in a variety of pricing plans.

If you are considering using Power BI, I recommend that you do the following:

• Try the free trial: Power BI offers a free trial that you can use to test the software.
• Read the documentation: Power BI provides comprehensive documentation that you can use to learn how to use the software.
• Take a training course: Power BI offers a variety of training courses that you can take to learn how to use the software.
• Join the community: Power BI has a large and active community of users who can help you with questions and problems.