Top 8 cost-saving strategies for airlines

In Airlines, Ancillary Revenue, Event, Featured on App, Low Cost Airlines, profitability, Reports by Alina Fisher2 Comments


Airlines must take a holistic approach to cost saving to remain competitive.

It's no secret that many airlines are struggling to make ends meet. It's a sector which has still not recovered from the 2008 market crash, and in which many company's business models were flawed even before the recession hit.

So while boosting revenues is still an important focus, particularly for the LCCs (or what I've recently heard called ‘new model airlines' instead), full service airlines must take a holistic approach to cost saving to remain competitive.

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In this e-book we've identified eight key areas where airlines can look at cost saving strategies. We've explored these areas as part of our own research for Aviation Outlook World, and included some suggestions for key vendors offering outsourced services in each area.

From fuel and fleet management to HR and call centres, here is a snapshot of some important areas to address when looking to reduce your costs. Enjoy, and let me know what you think.

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  1. William Ross

    Hi guys. I know how one airline is saving costs by adopting a policy of “no refunds” under any circumstances. Their F page is full of unhappy customers refused refunds & compensation for late flights, missed connections, cancellation of forward flights and a host of other issues.
    The airlines zany marketing attracts young customers who have the least experience & resources to call upon when they are left in the lurch by unscrupulous companies. Consumer Protection Legislation is simply ignored, and is any sense of moral behavour, hoping people will just give up as the airline just wears them down with antagonising polite refusals. This is how Scoot saves money & reduces costs but I’ll bet it’s not listed in your book of recommendations. They seriously need your help.

  2. danny

    Hi Bill, thanks for the comment. The Asian airlines like Scoot seem to be dominating because of their ultra low cost models. It will be interesting to see if this policy changes as they expand their long haul routes in the future and if what they are doing is actually sustainable.



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