On-time performance is an important metric for airlines that measures schedule adherence. For AirAsia, OTP declined from 85.66% in 2013 to 78.08% in 2014, however passenger numbers continued to rise during this period. While improved OTP can reduce operational costs through efficiencies, other factors like competitive fares, marketing strategies, and route negotiations likely had a greater impact on passenger loyalty and growth for AirAsia. Underlying causes of delays still need to be addressed to minimize financial losses from poor on-time performance.

1. THE IMPACT OF ON TIME PERFORMANCE ON
OPERATION MANAGEMENT AND PASSENGER
LOYALTY TO AIRLINES.
REEFEAR EAPEAR ANAK AJANG
MASWEERA BIN MAHADI
NOR AKILAH BT MOHD AMIR
NORAMALINA ZULKIFLI
MUGAMBIGAI D/O MURUGAN
UMMI SAKINAH BINTI MOHAMED NOR

2. Introduction
• On time performance commonly referred to as “OTP” is a standard aviation
measurement to track the day-to-day performance of an airline.
• OTP is also a measurement of our ability not only to operate the planes safely
and on time but also to consolidate multiple customer's shipments, accurately
load, unload, connect, deconsolidate and deliver them through their extensive
flight network to customers on time.
• On-time performance refers to the level of success of the service remaining on
the published schedule.
• On time performance is measured as the number of flights operating on time
as a percentage of the number of flights operated on any particular sector.

3. MEASUREMENT OF OTP
Terms Explanation
On time departure
(D15)
A flight departure is counted as "on time" if it departs the gate within 15
minutes of the scheduled departure time shown in the carriers' schedule.
On time arrival
(A14)
A flight arrival is counted as "on time" if it arrived at the gate within 15
minutes of the scheduled arrival time shown in the carriers' schedule. Neither
diverted nor cancelled flights count as on time.
Cancellation A flight is regarded as a cancellation if it is cancelled or rescheduled less than
7 days prior to its scheduled departure time.
On time departure
percentage
The percentage of on time departures is measured against the number of
departures operated on any particular sector.
On time arrival
percentage
The percentage of on time arrivals is measured against the number of arrivals
operated on any particular sector.
Cancellation
percentage
The percentage of cancellations is measured against the number of services
scheduled on any particular sector.

4. Factors that effect OTP
• Air Traffic Clearances
• Passengers
• Weather
• Technical Defects

5. ON TIME PERFORMANCE
STATISTICS FOR NORTH
AMERICAN REGION
Presented by:
Amalina Zulkifli

6. North American Region 2013

7. North American Region 2014

8. North American Region Jan 2015

9. ON TIME PERFORMANCE
STATISTICS FOR EUROPE REGION
Presented by:
Akilah Mohd Amir

10. Europe Region 2013

11. Europe Region 2014

12. Europe Region Jan 2015

13. ON TIME PERFORMANCE STATISTICS
FOR ASIAN-PACIFIC REGION
Presented by:
Masweera Mahadi

14. Asian Region 2013

15. Asian Region 2014

16. Asian Region Jan 2015

17. Future on time
performance
Presented by:
Reefear Eapear

18. FUTURE ANALYSIS OF OTP
On Time Performance (%) Schedule Flights
Airlines Jan Feb March Jan Feb March
JAL 86.54 90.23 90.20 22,815 20,521 22,815
Air Asia 86.53 84.78 83.52 13,761 12,454 14,035
Malaysia Airlines 82.51 82.13 82.61 16,262 14,742 16,269
ANA 84.81 89.99 89.14 37,315 33,755 37,459
Alaska Airlines 85.22 87.83 86.82 27,092 24,662 28.569
American Airlines 72.77 72.32 75.25 106,169 96,132 108,991
Delta Air Lines 82.88 77.92 82.33 145,993 133,902 160,398
WestJet 73.05 75.66 84.85 17,011 15,538 17,359
Iberia 92.72 92.33 92.48 13,750 13,010 14,982
Lufthansa 83.49 82.80 86.60 37,217 36,673 42,084
Aeroflot 84.91 89.51 94.39 22,591 20,510 22,943
KLM 81.28 90.53 83.08 17,013 15,862 18,920

19. FUTURE ANALYSIS OF OTP

20. ASIA-PACIFIC REGION
86.53%
84.78%
83.52%
83.52%
82.47%
84.09%
85.12%
13,761
12,454
14,035
11,500
12,000
12,500
13,000
13,500
14,000
14,500
January February March April May June July August September October November December
80.00%
81.00%
82.00%
83.00%
84.00%
85.00%
86.00%
87.00%
AIR ASIA
OTP Schedule Flights otp forecast

21. North American Region
85.22%
87.83%
86.82% 86.26%
89.10%
87.95%
27,092
24,662
28,569
22,000
23,000
24,000
25,000
26,000
27,000
28,000
29,000
January February March April May June July August September October November December
83.00%
84.00%
85.00%
86.00%
87.00%
88.00%
89.00%
90.00%
ALASKA AIRLINES
OTP Schedule Flight otp forecast

22. Europe Region
92.72%
92.33%
92.48%92.48% 92.23%
93.22%
94.67%
94.88% 95.12%
13,750
13,010
14,982
12,000
12,500
13,000
13,500
14,000
14,500
15,000
15,500
January February March April May June July August September October November December
90.50%
91.00%
91.50%
92.00%
92.50%
93.00%
93.50%
94.00%
94.50%
95.00%
95.50%
Iberia Airlines
OTP Schedule Flight OTP forecast

23. THE IMPACT BETWEEN AIRLINE OTP
PERFORMANCE, OPERATION MANAGEMENT AND
PASSENGER LOYALTY
Presented by:
Reefear Eapear

24. Selected Airlines
• Air Asia Group: Established in 1994 and began operations on 18 November 1996
• A low cost carrier (LCC)
• Operates (Hub) in Malaysia, Indonesia, Thailand, India and Philippines
• Operates scheduled domestic and international flights to 100 destinations spanning 22
countries.
• Main Hub: KLIA2
• Subsidiary:
a) AirAsia X
b) Indonesia AirAsia
c) Thai AirAsia
d) AirAsia Philippines
e) AirAsia Zest
f) AirAsia India
• Fleet: 183

25. AirAsia OTP performance (2012-2014)

26. Total number of AirAsia passengers (2012-
2014)

27. Total revenue per year (2010-2014)

28. The Impact of On-Time Performance for Air Asia
1. On-time performances are not directly giving impact to
the passenger loyalty and operational management
• The OTP are one of the minor causes for airlines to have better
services.
• Air Asia was recorded 78.08% on-time performance on 2014
(2013 – 85.66%) but their passenger are rising from 42.61
million passengers on 2013 to 49.5 million passengers on
2014.

29. The Impact of On-Time Performance for Air Asia
2. Operational Operations - all delays will cost from 0.6 to 2.5% of their
operating revenues.
• Improved on-time performance can help achieve significant cost savings to
operational cost
• Set up special teams or organizational units
• Research - there is a positive correlation between on time performance and
operating profit.

30. Percent of Total Delay Minutes
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Air Carrier
Delay 26.3% 25.8% 28.0% 27.8%
28.5
%
27.8
%
28.0
%
30.4
%
30.1
%
31.9
%
29.4
%
30.2
%
Aircraft
Arriving Late 30.9% 33.6% 34.2% 37.0%
37.7
%
36.6
%
36.2
%
39.4
%
40.8
%
41.4
%
42.1
%
41.9
%
Security Delay 0.3% 0.3% 0.2% 0.3% 0.2% 0.1% 0.1% 0.2% 0.1% 0.1% 0.1%
0.1%
National
Aviation
System Delay 36.5% 33.5% 31.4% 29.4%
27.9
%
30.2
%
30.6
%
25.7
%
24.8
%
22.5
%
24.2
%
23.5
%
Extreme
Weather 6.1% 6.9% 6.2% 5.6% 5.7% 5.4% 5.0% 4.4% 4.1% 4.0% 4.1%
4.3%

32. Summary
-In this case ,OTP doesn’t play an important roles in passengers preference of
airline choices .
-Due to certain factors that lead this thing to be happen :
Negotiation
Fares
Strategy
Marketing strategy

33. Conclusion
Underlying factors of OTP to decline must be investigated and addressed to
ensure the airline will not make more loses that is contributed by OTP. If matters
are not being paid attention to it will cause a significance loss to the airline in
term of revenue. Among the underlying factors of delays is aircraft delayed due
late arrival from a previous flight, weather, airport congestion, air traffic
clearance, engineering delay, passengers late show up limited buffer time
between aircraft arrival and departure time. the following suggestion should be
considered to improve the airlines (OTP).