Determination of Effective Balanced Indicators in the Airline Company Using a Modified Fuzzy Analytical Hierarchy Process Approach

Abstract

The determination of the balanced scorecard (BSC) model based on the example of an airline company are considered in this article. The main objective is the finding of the effective indicators for the airline company activities which are major importance for the company's strategy. The authors used the following research methods: the Fuzzy Analytical Hierarchy Process (FAHP) and the Analytical Hierarchy Process (AHP) (T. Saati's method). On the result of research priority (importance) and weight of all perspectives and corresponding indicators are determined. According to the research, the first priority is the ‘Customers’ perspective, the second priority is the ‘Finance’ perspective, the third priority is the ‘Internal business-processes’ perspective, and the fourth priority is the ‘Learning and Growth’ perspective. During the study, 20 indicators from 37 indicators were selected. The results of the research show that such indicators as passenger satisfaction, code-sharing agreements with airline companies, the number of passengers are the most effective for the ‘Customers’ perspective. Profitability, revenues, operating costs, ROIC, EBITDAR are the most significant indicators for the financial perspective. Indicators such as the average age of the park, technical dispatch reliability, On-time Performance of flights, the number of accidents, the level of safety, the number of aircrafts are the most significant for the ‘Internal business-processes’ perspective. The indicators like the employee satisfaction, employee efficiency, percent of trained employees from total number of employees, the amount of funds for training, the number of passengers buying tickets through websites, IT costs are most significant for the ‘Learning and Growth’ perspective. With the help of selected indicators, the company can monitor the effectiveness of its activity.