Establishing Effective Key Performance Indicators (KPIs) as Part of Performance Measurement System in Airline Enterprises (Egypt Air: Case Study)

It is obvious that measurement and the performance evaluation represent nowadays a very important part of management, as well as, a majority of decision-makers will agree with the statement that performance measurement is an inevitable part of integrating and managing their company. So the purpose of this paper is to investigate how Performance measurement System of airline enterprises can be effectively measured by specific Key Performance Indicators (KPIs) in their management and operations system. The study also examines whether the extent of KPI applications influence on the airline company performance. As well as, inspects the extent of these enterprises realization that perception of key performance indicators as a basis for its Performance measurement System. Also, this research examines model depending on an approach which derives its key performance indicators directly from the airline’ strategic objectives, and goals which led to critical success factors (CSFs) and discusses the ability of implementation a sustained, structured process of airline enterprises that drive to enhancement the management system which depends on effective KPI. The research also assess the KPI within two categories (Management KPI & Operational KPI) For the mentioned above, some hypotheses were developed and tested to achieve the research aims. Questionnaire form was used for data collection purposes, and 192 forms were collected for testing purposes. The results indicate that Management KPIs and operational KPIs are significantly associated with the Performance measurement System. The results have important implications for managers and professionals interested in measuring performance using KPIs.