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PerformanceMeasurestoSupportCompetitiveAdvantage
Theemergenceinthe1990soflow-costairlinesandtheexpansionof
theEuropeantravelmarkethasshownhowcompetitioncansignificantly
affectthestructureofanindustry.
RyanairandeasyJetarenowwell-establishedandtheiron-goingsuccess
willdependuponacontinuingabilitytoattractcustomersandmaintain
operationalefficiency.Thismustbedoneinthecontextofincreased
competitionfromscheduleandcharterairlinesthatnowrecognisethe
effectivenessofthebusinessmodeladoptedbythelow-costcarriers.
Thisarticleexamineshowthebalancedscorecardmightbeusedto
maintainthelow-costcarrierscompetitiveedge.
Thebusinessmodeladoptedbylow-costcarrierscanbeviewedas
havingthreebroadelementsonwhichsuccessisbased:
routenetworkdevelopment
branddevelopmentandmarketingeffectiveness
low-costoperations.
Theseaspectscanbeseentobestructuralastheyreflectmajor
decisionsanddevelopmentswhichsetthecontextforoperational
performanceandday-to-daymanagement.
Theroutenetworkistheproductdimensionoffirstimportanceto
customers.BeforeEuropeanairtravelwasderegulatedinthemid-1990s,
themarketwasneatlydivided.Schedulecarriersfocusedprimarilyon
businesstravellerswith75%ofthemarket,theother25%being
providedbycharterairlinesaspartofthepackageholidayindustry.
Low-costcarriersuseaircraftwhichforEuropeanroutesaregenerally
largerthanthoseusedbyscheduleairlinesandroutesthebalanced
scorecardmustbeselectedtoprovidehighloadfactors,iepercentageof
availableseatssold.
Routeschosenshouldbenewroutesorthoseservedbyhigh-cost
carriers,andhaveappealtoleisureandprivatetravellers.Thisapproach
allowslow-costcarrierstousesecondaryairportsatmajorEuropean
citiesorregionalairportswhichproverseashomeownersgreater
accesstopropertieswithminimumtravelinthedestinationcountry.
Anothermajoraspectoftheroutenetworkdecisionisthedeparture
airport.Low-costcarriersuseofsecondaryairportsintheUKprovides
conveniencetotravellers,andimportant
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