Airlines performance analysis, factors affecting performance, strategy

Aviation is a sector where competition is intense and sensitive to economic, political, geographical, environmental and biological changes. Since the operational leverage is very high and the operational profitability is low, when the performance analysis is not performed correctly and accordingly the correct strategy is not implemented, profitability of airlines is affected negatively. Therefore, performance analysis and the creation of the strategy accordingly are of great importance. There are many performance metrics (KPIs) used in the aviation industry, but comparing airlines performance with one or more of them separately is difficult and not accurate. With this study a performans analysis model will be created considering size of investment, spending, the region and business model (Full Service Carriers-FSNCs), Low-cost Carriers-LCCs)). The model was created with panel data using the data of 2008-2017 of 50 leading airlines in the aviation industry. With this model, it will be possible to determine whether airlines have created additional operating profit other than the operating profit they should have, compare performance, and analyze which performance metrics are explained operating profit mostly. After performing the performance analysis, the reasons of the related performances will be analyzed, the decisions to be taken and the strategies to be created according to the results of the performance analysis will be proposed.