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Airline's management system


A clear management system shall be established for the total business and be available for all employees and other stakeholders in order to create understanding and commitments. The management system shall be focused on the business outcomes, e.g.
Result = Revenue - Cost.
A simple management system can be visualized by the following five parts.

1 Corporate Governance

Without  an engaged and clever Directors of the Board supervising that the company follows laws and regulations and delivers share holder values (dividends + value growth), it is unlikely that the business will prosper. The relation between Chairman of the Board and the Managing Director is critical important. 

2 Company Management

The Board nominates the Managing Director and issues working- and report instructions. The Managing Director shall, together with staff functions and the management group, plan, steer, support, coordinate and follow-up the business through visible management processes and meetings and report business outcomes to the Board.

3 Commercial

´The Commercial function shall maximize sales contribution which is sales revenue minus all sales and marketing related costs.

4 Business

The Business  function shall optimize the results from the business portfolio. An airline's business portfolio comprises mainly of the results from the flights.

5 Operations

The Operations function shall minimize the production costs regarding the safety, security and quality limitations. In the airline industry, there are strict rules and regulations supervised by the national aviation authorities.

 Integrated Management System with focus on the business.


            Revenue                        Result                                Cost