Large airlines use a variety of cost cutting and budgeting techniques to increase profits. They do so by trimming the fat throughout their business, which in turn enables them to offer low-cost tickets, bringing in larger volumes of customers. While small airlines do not have the same pulling power as their multinational competitors, there are a number of ways in which they can save money, helping them to contend with huge industry leaders.
Here are four proven ways that small airlines can cut costs.
Reduce Onboard Weight
It is a simple equation that extra weight requires extra fuel, which in turn equals more expensive flights. Finding ways to cut weight without damaging the service provided by a small airline can be tricky, but fortunately there are a number of areas that can reduce mass without damaging customer satisfaction. These include slim line seats, lightweight beverage trolleys and replacing onboard documentation (e.g. catalogues, brochures and instruction manuals) with tablets.
Utilise Advertisement Space
Bus stops, toilet cubicles, tube trains and retail fitting rooms all have one thing in common: they make use of available space for paid advertisements. While airports are filled with adverts, it is very rare to find them on a plane. For small airlines looking to compete with large industry leaders, using adverts onboard aircraft could offer huge revenue potential. Utilising space on folding tray tables or on overhead compartments could soon become the norm, with new aerospace interior design featuring projected advertisements.
Charge for Extras
One of the main ways large operators are able to offer such low and competitively priced flights is by only including the basics – i.e. a seat and hand luggage allowance. While customer satisfaction and loyalty is key for the survival of small airlines, there are a number of additional charges that could be utilised, including: fees for card transactions, charges for last minute cancellation or flight swaps, a cost for specified seating, or fees for hold luggage and extra large cargo.
Shop for Supplies
In any business, it always pays to shop around and check your prices, but not just for your product – or in this case, your flight. To be able to remain competitive, consider switching your suppliers. When doing so, it is advisable to get quotes from multiple suppliers, to give you negotiation power and secure the best possible price. In addition, remember you can split your orders between different companies, allowing you to choose specialist suppliers such as Flightstore Flight Supplies for pilot clothing.