IntroductionThe intention of this essay is to critically evaluate performance management in application to the commercial aviation sector. Extensive studies and countless definitions of the term performance management will be included to show how major airlines use this concept as a management tool to maximize sales and gain a competitive advantage over their competitors. The concept's introduction first occurred in 1985 when the US airlines began to face competition from low-cost airline Peopleexpress, leading the airline to "develop a program of revenue management…a key element of this program was performance management” (Hayes and Miller, 2011). The goal was to help American airlines gain a competitive advantage over low-cost carriers. There are various definitions of performance management applied in academic research for countless different service industries, several business and economic studies and reports illustrate that performance management is a constituent part of the Revenue Management Program . Huefner (2011) suggests that revenue management encompasses differential pricing and other techniques to influence customer demand for an organization's products and services. The objective of yield management is as described by Wang and Bowie (2007) “to maximize revenue through the effective management of three main areas: pricing strategy, inventory control and availability control. While (Wall and Griffiths, 2005) further describes that Yield Management is “the bringing together of information systems technology market analysis, organizational design, business experience and knowledge of sector in an integrated revenue generation strategy. With countless definitions of performance management, it's not worth middle of paper...... sales volume. Negotiation of reservations: Within other airlines, a better return can also be obtained through price management. such as availability via "up-selling of specific areas to more expensive products or cross-selling to alternative products" (Ingold and Mamahon-Beattie et al (2000). The fact that easyjet operates a single class product restricts them Because prices are fixed regardless of customer type or segment Ultimately, the use of the yield management system proved to have enabled easyjet to successfully implement its pricing policy. low from its design in order to enable the successful development of the yield system, by developing a good forecasting plan and a history are essential These are examples of how airlines (easyjet) involve management tools. performance in their businesses in order to gain an advantage or simply to increase their income..