Question

How can capacity and utilization be measured at an airline such as Southwest Airlines?

Answer 1

Solution:

The capacity and utilisation metrics would still apply for airlines company as well. However, the paramters measured for these metrics would be different. In airlines the capacity is the number of passengers an airline can transport given the unit time.Hence, the capacity can be 100 passengrs per flight or somewhere like a few thousand passengers per day or any such combinaion. Hence, the capacity of the airlines company such as southwest airlines can be measured by the number of passengrs it can fly.

The utilisation of the airlines company such as southwest airlines can be measured in terms of their flights and the utilisation of aircrafts in comparison to the revenues generated. The utilisation of the aircrafts is a very important metric for understanding the utilisation of the airlines company. The utlisation can also be measured in terms of cost in-flight services.

Hence, these are some of the ways in which utilisation and capacity can be measured in an airlines company.