AIRPORT COSTS MANAGEMENT BASED ON THE LOGISTICS APPROACH

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AIRPORT COSTS MANAGEMENT BASED ON THE LOGISTICS APPROACH

Journal Title: Проблеми системного підходу в економіці - Year 2017, Vol 6, Issue 62

Abstract

In order to ensure an uninterrupted round-the-clock flights’ performance, especially during the peak load, the airports need to respond quickly to the movement of production operations, dynamically redistribute them between all departments and services. Thus, the use of logistic management methods becomes an important success factor in the airport’s operation. The main requirements of this very factor are flexibility and efficiency, the ability to respond quickly to market conditions’ and the environment changes. The increase of airport traffic requires the availability of possibilities for expanding or reduction the systems and appropriate infrastructure. Logistics costs play an important role in the activities of any enterprise and they represent the monetary expression of the spent material, labor, financial, information resources complex of the enterprise that are associated with the provision of business processes and operations of the material flows transfer within the logistics system. This is of particular importance for air transport complex enterprises. Logistics costs act as a management tool in the airports’ practical activities. The definition and logistics costs analysis allows to make reasonable management decisions. At the same time, the size of these costs affects both the economic situation and the competitiveness of the enterprise. Despite the fact that the accounting standards of Ukraine do not provide the separate definition and segregation of logistics costs, their optimization and reduction will contribute to the growth of both the airport's profit and the quality level of services provided. In order to increase the production rates, Ukrainian airports need to use the latest technologies, the airport management elements’ combination into a single information system with the possibility of permanent access to all important data, which will increase safety and efficiency at the same time. Thus, the display of all production processes, concerning the AC ground handling, in the airport management information systems will provide a full information, will give the opportunity to manage and plan activities, will ensure redistribution of production capacities and labor resources, will increase the efficiency of production processes and reduce logistics costs. Taking into consideration the abovementioned, the introduction of logistics costs management systems is the only possible way for the further development of Ukrainian airports, which will increase the efficiency of airport complexes, will improve the quality of services for passengers and airlines and improve the airport infrastructure.

Authors and Affiliations

V. Yu. Pavelko

Keywords

EP ID EP539380
DOI -
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