How Independent Airlines Can Save Money

An independent airline can be an expensive business to run and in such a competitive market with fierce competition from larger commercial lines, saving money and increasing profit margins has never been more crucial. Thankfully, there are a number of ways small airlines can reduce operation costs and save money, without impinging upon the service they provide.

If you operate an independent airline, here are some effective cost cutting methods to consider implementing.

Charge and Change

A decade ago, you would book a flight and all of those little extras — such as additional baggage allowance and in-flight meals — would be included in the price. Forward to 2016 and major airlines are managing to simultaneously cut ticket costs, secure more passengers and increase profits, all the while charging for those extras. To cut your expenses, follow the trend by changing your booking system and charge to allow passengers to select a seat.

Compare Your Suppliers

When first choosing a supplier, most businesses shop around, sourcing quotes from multiple providers and leveraging their prices. However, it can be easy to settle and get too comfortable, a mistake that can prove to be costly in the long term. Instead, to get the most competitive prices and lower your overall business expenses, make sure to regularly compare different suppliers for the cost of items, such as duty free, pats and requipment, or the likes of Flightstore for pilot uniforms.

Balance the Wages

Large airlines have managed to reduce staff numbers over the years by investing in technology. For example, self check-in screens have reduced employee numbers required at desks. When it comes to cutting costs, independent airlines have to assess how many staff are required to complete tasks and ensure that passengers are happy, without losing money through unnecessary wage packets.

Use Smaller Airports

Unbeknownst to most passengers, taking off and landing aircraft at large airports carries a huge price tag. While larger airlines can wield their size as a powerful negotiation tool to help them to reduce costs, smaller independent airlines do not have the same ability. Rather than trying to haggling and signing an agreement with major airports, consider using small secondary airports, as they typically carry lesser fees, lowering your business costs.

 

From charging for extras to negotiating with suppliers to reducing wages and using secondary airports, there are a number of things independent airlines can do to reduce costs and increase profits.

Marketme

Marketme

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