Performance analysis In January you interviewed the Vice-President of Cargo Operations for GreenJet Airlines, Carla Scott.

Advise her on her proposed bonus system for on-time performance.

What we can do for our providers is to make more incentives for performance, which are tied to service levels. Right now if a major problem occurs, that costs us a claim or customer ill will, we may arbitrarily deduct something from their invoice, but that always creates arguments.
A better way, for example, might be if they perform to an on-time departure level of at least 95%, they could get a bonus on their invoice, or if they drop below 90%, there would be a penalty. Of course, we then have to agree on the bonus or penalty amounts, and how the ontime departure percentage is measured. Do we adjust for uncontrollable delays? This is what we’re actually in the process of developing now, but we do need to provide more incentives.
Look at December’s Ground Performance Report, but it is not as simple as giving a monthly bonus to each provider that achieved 90% on-time performance.

For example, just last month (December) we had a situation at HIJ (disguised Americas’
regional airport code). We had an aircraft that was very tightly scheduled for the whole rotation (Europe–Africa–Americas–Europe), and we were planning to use the aircraft again soon after it got back to Europe. There was a two-hour delay in HIJ, because the cargo-service provider wanted to wait for some cargo that was arriving late. So they delayed the flight two hours, and it screwed up the whole rotation and cost us a lot of money. More than the value of the cargo! Just the thing we wanted to avoid. What we gained by waiting for the cargo, we lost five times as much because of problems in the entire rotation of the fleet.

Transcribed Image Text:

GreenJet Airline ground time performance report americas region december Station* Flights % On-time Controllable delays Standard Ave actual Variance FFFFFFUUFFFUFUUF departure ground ground time** time ABC 16 88% 2 3:07 2:12 0:55 BCD 8 100% 0 2:30 2:12 0:18 CDE 45 98% 1 2:22 1:59 0:23 DEF 9 100% 0 4:03 3:26 0:37 EFG 9 67% 3 3:03 2:57 0:06 FGH 49 100% 0 1:28 1:15 0:13 GHI 6 83% 1 1:30 1:42 0:12 HIJ 31 90% 3 3:14 3:26 0:12 IJK 19 100% 0 1:31 1:07 0:24 JKL 9 100% 0 1:46 1:37 0:09 KLM 21 95% 1 1:51 1:45 0:06 LMN 16 94% 1 1:30 1:38 0:08 MNO 4 100% 0 1:30 1:13 0:17 NOP 13 85% 2 2:09 3:02 0:53 OPQ 10 90% 1 2:36 3:55 1:19 Total region 265 94% 15 2:13 2:06 0:06 Disguised airport codes ** Standard ground time reflects each airport's normal air & ground traffic, taxiing, and servicing times