Air Transport Value chain

Aviation Value Drivers

Understanding the value drivers is critical to capturing the value. Aviation by and large focuses too much on the small value drivers as these are customer focuses, time demanding, but of small value.

Typically airline and airports focus on the easy parts which are also the daily priority issues. The skills required for strategic and tactical are different and should be recognised as such.

The hierarchy of value drivers (vertical with the lead time required to properly exercise control of them is a correlation as shown in the chart. Market share can be competed in each schedule period but realizing the full potential in any market requires lead time to secure required bilateral access and source capacity.

Equally for airports, significant capital investments, Asset utilisation is of more value than operating efficiency, or put another way good operating efficiency cannot overcome poor capital efficiency.. So in the chart above decisions on the LH end of the axis are few, difficult, critical to get right.

Decisions on functionality at RH end of spectrum are many, relatively easy, and recoverable if you get them wrong. (strategic versus tactical).