Faculty Advisor

Dr. Leila Halawi

Document Type

Capstone

Submitting Campus

WW Campus for Central & South America

Publication/Presentation Date

11-2019

Abstract/Description

Since 1987, the US Department of Transportation (DOT) has ordered US airlines to report baggage handling statistics. The Code of Federal Regulations (CFR), requests each U.S. carrier to report monthly the total number of passengers enplaned, and the total number of mishandled baggage reports (MBR), including lost, pilfered, damaged and delayed baggage. The U.S. DOT also created a mishandled-baggage rate, which represents the total number of MBRs divided by 1,000 passengers enplaned. This KPI is monthly published at the Air Travel Consumer Report. And it is used worldwide to make comparisons between regions, airports, and airlines, characterizing efficiency and consistency in service and setting a benchmark for the industry.

The problem with this indicator created in 1987 is that it only considers passengers, not checked baggage. The customer's behavior has changed a lot after airlines started charging for the checked baggage, influencing KPI results.

Therefore, in January 2019 US DOT proposed a new mishandled bags KPI for the airline industry, instead of dividing the original KPI per 1,000 passengers, the new KPI proposes dividing the total number of mishandled baggage report per 1,000 checked baggage. This KPI considers checked bags, correcting this flaw, and creates a more accurate and reliable indicator, avoiding incorrect investment decisions and loss of money.

Desde 1987, o Departamento de Transportes dos Estados EUA (DOT) ordena que as companhias aéreas dos EUA reportem as estatísticas de manuseio de bagagem. O Código de Regulamentos Federais (CFR) solicita a cada transportadora dos EUA que reporte mensalmente o número total de passageiros embarcados e o número total de relatórios de bagagem extraviada (MBR), incluindo bagagem perdida, furtada, danificada e atrasada.

O DOT dos EUA também criou um índice de bagagem extraviadas, que representa o número total de MBRs dividido por 1.000 passageiros embarcados. Este KPI é publicado mensalmente no Air Travel Consumer Report. E é usado em todo o mundo para fazer comparações entre regiões, aeroportos e companhias aéreas, caracterizando eficiência e consistência no serviço e estabelecendo uma referência para o setor.

O problema com esse indicador criado em 1987 é que ele considera apenas passageiros, não bagagem despachada. O comportamento do cliente mudou muito depois que as companhias aéreas começaram a cobrar pela bagagem despachada, influenciando os resultados do KPI.

Portanto, este estudo propõe um novo KPI de malas mal manejadas para o setor aéreo. Esse KPI considera as malas despachadas, corrigindo essa falha e cria um indicador mais preciso e confiável, evitando decisões incorretas de investimento e perda de dinheiro.

Publisher

Embry-Riddle Aeronautical University

City

Sao Paulo, Brazil

Additional Information

This Capstone Project was prepared and approved under the direction of the Group’s Capstone Project Chair, Dr. Leila Halawi It was submitted to Embry-Riddle Aeronautical University in partial fulfillment of the requirements for the Aviation Management Certificate Program.

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