ACU June 5th DRAFT

AVIATION
position in this matrix. In this case, no
changes in the ranking sequence.
Reposition the Cost – EasyJet case
study
But if EasyJet tries to reposition its
cost and report the breakeven load to
be 78% instead of 79.5%, i.e., adjusted
its cost to drop 1.5 points, then the
story will be different.
A c c o r d i n g t o t h e n e w c o s t
adjustment, the new matrix will show
a position change for EasyJet, as it
moves from second quarter to first
quarter, taking the lead on the scale
excellent - poor performance axis, as
shown in the following figure.
So in second case, for linear
comparison, Ryanair still is the leader,
while in multi – dimensional matrix
analysis, EasyJet will be the leader, i.e.,
as it needs to drop 1.5 points of its
cost to achieve the top.
The Conclusion
The performance of any airline can be
addressed by two main factors,
1- Achieved Load Factor
2- Breakeven Load Factor
These two factors can represent linear
c o l u m n g r a p h w h i c h g i v e a
comparison measured by a linear
difference points.
But to compare with other airlines of
the same kind (LCC), we have to
include the other base line parameter
of the committee which is Average
value for Actual load factor and
breakeven load factor and that is best
described by two dimensional matrix
actual – breakeven load factor.
This will lead us to develop another
performance matrix that devoted by
45 degree from the main axis define
by Excellent – Poor Performance
matrix
This matrix gives a clear picture for
comparison and ranking level.
Disclaimer: Mohammed Salem Awad is an aviation consultant at Yemen Airways. Opinions expressed
in this piece are solely his and not necessarily that of Air Cargo Update.