It is crucial for aviation companies to select and use relevant aviation KPI to assess the value of their outputs. KPI or key performance indicators, after all, can be used to determine their organizational success or failure.
The term "aviation" traditionally refers to all activities with involvement of man-made flying devices, like aircraft. The same term can also be used to refer to all people, regulatory bodies, and organizations that have something to do with these devices. Aviation operations are categorized into two: civil aviation and military aviation. Civil aviation will include all non-military flying which are categorized into general aviation and scheduled air transport. The scope of general aviation will include non-scheduled civil flying: commercial or private. This will include all business flights, private aviation, air charter, flight training, parachuting, hang gliding, and aerial photography. Military aviation, on the other hand, involves the use of all military aircraft that are often part of a government's military arsenal.
Undoubtedly, the aviation industry is a significant part in the lives of the millions of people who have the need to move from one place to another. Today, the industry is faced with the challenge of diminishing its carbon dioxide emissions worldwide. Presently, about 2% of the total greenhouse gas emissions in the globe can be attributed to aviation operations according to the Intergovernmental Panel on Climate Change, which was set up by the World Meteorological Organization and the United Nations. This fact is even made more urgent by the discovery of scientists and environmental advocates that greenhouse gases released at high altitude will trap more heat than if these gases were released on the ground. This development has spurred the aviation industry to improve their fuel efficiency by looking into alternative sources of fuel.
Coupled with the challenge of eliminating or diminishing the industry's carbon dioxide and greenhouse gases emission rate is the challenge of handling the increase or growth in global air travel. Despite the recent economic downturn suffered by many countries, the International Air Transport Association reports a growth in the number of air flights by 5% a year. It is expected that this growth in the aviation industry will continue until 2011.
These issues were extensively discussed during the meeting of airlines and airports, aircraft and engine manufacturers, as well as fuel suppliers in a meeting in Geneva last April 2008. In the same gathering, industry players identified four areas of improvement. Among which are economic instruments, technology, operations, and infrastructure. However, the most urgent concern that they identified is the finding of an ideal kerosene jet fuel replacement since such fuel is primarily derived from crude oil, making it less environment-friendly. Despite being a highly competitive industry, many airlines are willing to share research and technology to find a potent solution to this problem.
Amidst all the many factors that continue to hound the aviation industry, aviation companies, particularly airlines, have resorted to investing in research and technology, as well as changing operating procedures for performance improvement. Through relevant aviation KPI, these companies are able to identify certain areas of operations that could still be greatly improved.