enhanced time execution can help accomplish noteworthy cost investment funds. Timeliness is a key initiative test all through the association and should rank high on the administration motivation from methodology and arranging the distance to cutting edge tasks. In adapting to present circumstances carriers need to take a vital point of view and apply a complete system that tends to the three principle levers for timeliness enhancements that are inside their range. System arranging and control flying machine accessibility, grounds activities and takeoff forms. Air Namibia current “on-time execution is poor”, (Air Namibia, 2015) and reliable on-time performance is critical to improving customer satisfaction and essential to a network operation with competitive minimum connection times and higher aircraft utilisation. The flight departure process is a core function of the airline’s operation. The success or failure of this process can make or break an airline’s reputation for reliability.
5. Steps to develop KPI’s
(Bauer, 2004), emphasized that ‘one of the key concerns during implementation of KPI’s the ability to differentiate more important strategy, driven metrics from the plain vanilla metrics. Selection of the wrong metrics for KPI’s can significantly damage or even submarine a performance management initiative’.
‘The critical stages for managing the KPI’s were planning, designing, implementing and measuring the effectiveness for continuous improvements’. The process of developing relevant KPI’s are first steps is to establish organisational goals and objectives. Step two is to establish critical success factors from the goals and objectives, which are critical success factors with a limited number of key activities that an individual, department or organisation should focus on to be successful. Step three is establish key performance indicator, KPI’s are calculated measures that quantify the critical success factor and enable the measurement of that strategic performance. Step four collect measures, relevant measure need to be gathered so we can determine metrics in step five. Step five calculate metrics from measures. Metrics are calculations of measures and are always expressed as ratios averages, rates or percentage. It’s equally important that metrics are defined by a time frame’ (Air Namibia, 2015) Air Namibia need to understand its business goals and objectives and establish KPI’s to measure them provide tangible and concrete evidence that either they are on the right track or they need to make changes to improve results.
6. Risk and factors affecting the role of transport and logistics
In such an intense competitive environment as the one that Air Namibia find itself at the moment, performance management has become a crucial factor for airline companies aiming to achieve sustainable successes. There are two major factor such as internal environmental and external environmental factors. Internal environmental factors are divided into four levels such as individual, service, functional and organisational levels. External environmental factors are divided into information technology, supply chain, globalisation and corporate structure’ (Moore, 2004). There are two types of risk such as internal risk and external risk associated in business affecting transport or logistics business operations. The top priority in airline operations is flight safety. Safety management system used by airlines to reduce risk in all aviation activities and process to acceptable levels, measure many performance indicators. One of this indicators is accident ad incident rate. ‘The accident and incident rate is tracked by all the airline companies’ (Kaplan & Norton, 1996)
A sustained increase in oil prices in Air Namibia can jeopardize financial projections and may require contingency support by the government. Certain measure can be taken to mitigate a fuel price spike. “These include the current move to a more fuel-efficient fleet, completion of fuel conservation initiatives, fuel hedging, and raising fuel surcharges or fares.” (Air Namibia, 2015) Sustainable business and organisations can be powerful drivers for more sustainable production and consumption. Environmental impacts, both of the company on the environment e.g. Greenhouse gas emissions, waste to landfill, and of the environment on the company e.g. a depleting natural resources base, how a company is operating in a carbon constrained word. An external demand shock in the form of a severe economic recession (e.g. 2008/9) currency volatility, terrorism, pandemics, or natural disaster could have an adverse impact on revenue’. In the airline industry, strategic plans and financial budgets are always at the mercy of external events beyond any one company’s control. Risks can best be mitigated by developing a commercial nimble business model. Measuring and managing environmental impacts drives and supports innovation in products and services development, helping to secure new markets and customers or safeguard existing ones.
7. Conclusions and Recommendations
The aim of this study is to analyse performance indicators used by Airline companies within the framework of a performance and strategic management tool, namely balance scorecard and to access its applicability in the airline business.
The Airline companies including Air Namibia have been found to use similar performance indicators within the financial, customer based, internal business process and learning and growth perspectives of balance scorecard and the challenge with many companies is therefore not determining the right KPIs but to ensure that performance is really measured and corrective actions are taken. In order to ensure completeness of the circle highlighted above, Air Namibia should not only define KPIs, but should also have systems to ensure that measuring and monitoring is taking place. And necessary adjustments are adopted. At executive level