DEVELOPMENT OF BALANCED SCORE CARD FRAMEWORK FOR PERFORMANCE EVALUATION OF AIRLINES

The paper aims to design a multidimensional performance measurement system for airlines in order to address the complexity of balancing objectives and operational activities. The research design and methodology uses secondary data collection i.e. annual reports and business reports of airlines which are collected from the airlines own website. The paper develops and applies a customized version of balanced scorecard based on a new set of performance measures. Data on eleven performance enablers for a case study of 100 world major airlines during 2009 to 2013 is considered in the study to develop performance measurement framework of Airlines based on balanced scorecard. The Measurement of Research Construct Adopted from Wu and Laio (2014) is validated through confirmatory factor analysis using Lisrel 8.8 and developed modified set of indicators of the constructs. Further, CRITIC method is used to determine relative weights of the indicators under respective perspectives of balanced scorecard.