5/27/2016

AboutthePerformanceMeasures|BureauofTransportationStatistics

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AboutthePerformanceMeasures
Howweretheseperformancemeasuresselected?
Whatchangeshavebeenmadetotheperformancemeasures?
Whatarethedatasourcesfortheperformancemeasures?
Whatarethedefinitionsofnetworkandlowcostcarriers?
Whydonttheperformancemeasurescoverregionalairlines?
Arenumbersavailableforotherairlines?
WhendoesBTSreleasetheairlineoperatingperformancemeasures?
Q.Howweretheseperformancemeasuresselected?
A.Alltheaviationdatapresentedintheperformance/productivitytablesandgraphsreflectSYSTEMairlineoperationsandrepresentstandardairlineindustryunits
ofproduction,variousoutputmeasurementsandoutputvaluations.
Q.Whatchangeshavebeenmadetotheperformancemeasures?
A.Measuresthatarenownumbered1,2,4,8,9and10arenowcalculatedusingoriginatingpassengersinsteadofenplanementsaswasdonebeforethethird
quarterof2006.Thischangewasmadetomoreaccuratelymeasureoutputperformance.Eachoriginatingpassengerrepresentsoneuniquesalebyacarrier
comparedtotheenplanementfigurewhichcountsanoriginatingpassengerasanenplanementforeachflightsegmentflown.Themeasurenownumbered4isnow
acalculationbasedonpassengerrevenue,ratherthanacomparisonofrevenuetocosts.Also,twonewmeasures,numbers3and6,wereaddedbeginningwith
thethirdquarterof2006.
FinancialMeasures:
1.SystemOperatingProfit/(Loss)perOriginatingPassenger.Priortothethirdquarterof2006,thismeasurewasSystemOperatingProfit/Lossper
Enplanement.
2.SystemOperatingExpenses(excludingRegionalJetContract)perOriginatingPassengermeasureshowmucheachairlinespendsinrelationtothe
originatingpassengersitcarries.Allexpensesnecessarytooperateanairlineexcludingcontractedexpensesrelatingtoregionaljetactivityareincludedin
thismeasurement.Priortothethirdquarterof2006,thismeasurewasOperatingExpense(ExcludingFuel/LaborExpenses)perEnplanement.
3.SystemOperatingExpenses(excludingRegionalJetContract)perAircraft.Thismeasurespreadsthetotalexpensestooperateanairlineovereachof
thecarriersindividualoperatingaircraftexcludingnonmainlineRegionalJetcontractexpenses.Thisisanewmeasurebeginningwiththethirdquarterof
2006.
4.PassengerRevenueperOriginatingPassenger(excludingRegionalJetContractRevenue)measurestheaverageamountofrevenuereceivedbythe
airlineforeachoriginatingpassenger.Priortothethirdquarterof2006,thismeasurecomparedanairlinesrevenueperenplanementtoitscostsper
enplanement.
EmploymentandTrafficMeasures:
5.FullTimeEquivalentEmployeesperAircraft.Employeesperaircraftprovideonemeasureofanairlinesefficiencywithrespecttotheaveragenumberof
allitsemployeesperunitofproduction.Thesmallerthenumberofemployeesperaircraftindicatesgreaterefficiency.Note:FulltimeEquivalentEmployee
(FTE)calculationscountparttimeworkersasonehalfofafulltimeemployee.
6.AveragemonthlyAvailableSeatMiles(ASMs)perFullTimeEquivalentEmployee.ASMs(oneaircraftseatflownonemile)arethebasicunitof
productionintheairlineindustry.ThismeasureisthesimplestgaugeofFTEproductivity.Note:FulltimeEquivalentEmployee(FTE)calculationscountpart
timeworkersasonehalfofafulltimeemployee.Thisisanewmeasurebeginningwiththethirdquarterof2006.
7.AverageMonthlyRevenueAircraftMinutesperFullTimeEquivalentEmployee.Themostneutralcommondenominatorinevaluatingproduction
performanceisrevenueaircraftminutesperemployee.Irrespectiveofanairlinesbusinessmodel(longhaulorshorthaulroutes)ortypeofaircraftitutilizes,
flighttimeiswhattheaircraftweredesignedtodo.Note:FulltimeEquivalentEmployee(FTE)calculationscountparttimeworkersasonehalfofafulltime
employee.
8.AverageMonthlyOriginatingPassengersperFullTimeEquivalentEmployeeisabasicmeasurereviewinghowmanyuniquepassengersare
transportedcomparedtothesizeoftheairlinesworkforce.Note:FulltimeEquivalentEmployee(FTE)calculationscountparttimeworkersasonehalfofa
fulltimeemployee.Priortothethirdquarterof2006,thismeasurewasAverageMonthlyEnplanementsperFullTimeEquivalentEmployee.
9.FuelCostperOriginatingPassenger.Ameasureofhowmuchairlinespayforfuelcomparedtothenumberofuniquepassengerstheytransport.Priorto
thethirdquarterof2006,thismeasurewasAverageMonthlyFuelCostperEnplanement.
10.AverageFullTimeEquivalentEmployeeCompensationperOriginatingPassenger.Abasicmeasureofhowmanypassengersarecarriedcomparedto
thecompensationoftheworkforce.Note:FulltimeEquivalentEmployee(FTE)calculationscountparttimeworkersasonehalfofafulltimeemployee.
Priortothethirdquarterof2006,thismeasurewasAverageMonthlyFullTimeEquivalentEmployeeCompensationperEnplanement..
11.AverageAnnualFullTimeEquivalentEmployeeCompensationisabasicmeasureofemployeecompensation.Compensationincludessalary+
benefits+payrolltaxes.Note:FulltimeEquivalentEmployee(FTE)calculationscountparttimeworkersasonehalfofafulltimeemployee.
Q.Whatarethedatasourcesfortheperformancemeasures?
A.DataaretakenfromairlinefilingswiththeBureauofTransportationStatistics:
Form41FinancialData,ScheduleP1.2,ScheduleP5.2,filedquarterly
Form41TrafficData,T100Market,andT100Segmentdata,filedmonthly
Airlineemploymentnumbersfiledmonthly
Q.Whatarethedefinitionsofnetworkandlowcostcarriers?

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AboutthePerformanceMeasures|BureauofTransportationStatistics

A.Networkcarriersoperateasignificantportionoftheirflightsusingatleastonehubwhereconnectionsaremadeforflightsonaspokesystem.Lowcostcarriers
arethosethattheindustrygenerallyrecognizesasoperatingunderalowcostbusinessmodel.
Q.Whydonttheperformancemeasurescoverregionalairlines?
A.RegionalJetairlinesperformancemeasuresarenotreportedherebecausethesecarriersoperationalperformanceresultsarecloselytiedtotheircontractual
agreementswiththelargermainlineairlinesthatspecifythenumberofflightoperations,marketsserved,andairfaresoffered.
Q.Arenumbersavailableforotherairlines?
A.BTSmakesthetrafficandfinancialnumbersavailableontheTranStatsdatabase,http://www.transtats.bts.gov/.Employmentnumbersforpassengerairlines
areavailableinmonthlypressreleases,whichcanbefoundathttp://www.bts.gov/press_releases/passenger_airline_employment.html
Q.WhendoesBTSreleasetheairlineoperatingperformancemeasures?
A.Theairlineoperatingefficiencynumbersareissuedquarterlyafterthereleaseofquarterlyfinancialdata.Thescheduleforreleaseofthequarterlyfinancialdata
canbefoundathttp://www.bts.gov/upcoming_data_releases/.

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