Managing airlines: the cost of complexity

Abstract

This paper is dedicated to the structure of airline networks as a sink of efficient airline operations. Parameters of complexity were derived and mirrored on level of service as well as efficiency parameters. Airlines usually considerers an operational overhead to predict the total flight operation cost. This parameter includes the expected cost for disruptions and delays. When an airline has to mobilize an aircraft in a base for recovering the service or for breaking an emergent dynamic, then it is running extra costs. The cost of managing complexity in the airline industry has a direct impact on profit and loss account. Therefore, this paper presents an integrated approach to evaluate this cost, based on padding and aircrafts dedicated to recover disruptions. Finally, some additional indicators are derived to evaluate reliability improvement as part of complex performance.