Performance Measurement and Benchmarking in Nigerian Airline Operations Using Balanced Scorecard

📖 ABSTRACT/OVERVIEW

The Nigerian aviation sector has experienced significant structural changes following the deregulation of the domestic airline market, yet systematic performance measurement frameworks remain underdeveloped within many operating carriers. This study applies the Balanced Scorecard (BSC) framework to develop a performance measurement system for Nigerian domestic airline operations, with empirical validation across three carriers operating hubs in Lagos, Abuja, and Kano. The BSC is operationalized through four perspectives, namely financial, customer, internal business process, and learning and growth, with key performance indicators selected through a Delphi study involving 22 airline operations professionals. Data for each indicator are collected through a combination of publicly available civil aviation authority reports, airline operational data requests, and customer satisfaction surveys (n=280). Benchmarks are established using comparable sub-Saharan African airline performance data. Findings reveal significant performance gaps on the customer and internal process perspectives, particularly in on-time departure performance, baggage handling reliability, and cabin crew service consistency. The financial perspective indicates that two of the three carriers are operating below minimum viability margins on at least two domestic routes. The learning and growth perspective identifies workforce training investment as significantly below benchmark levels for all carriers. A strategic performance improvement plan structured around the BSC is proposed. This research provides a professional performance management framework for Nigerian airline management teams. Keywords: Balanced Scorecard, airline performance, Nigerian aviation, performance measurement, benchmarking

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