PPRuNe Forums - View Single Post - Low Cost mentality!
View Single Post
Old 26th Sep 2006, 13:54
  #6 (permalink)  
Deskjocky
 
Join Date: May 2005
Location: Johannesburg
Posts: 417
Likes: 0
Received 0 Likes on 0 Posts
that’s the problem- at some point you are going to have to make the investment- the classic LCC time bomb scenario.

For example you cant expect the call centre girls to sit on coke crates for ever sharing a telephone and a computer (err…hang on this isn’t Nationwide- ok they probably have a chair each and have a very nifty time sharing scheme going on the computer- Mr O and the lads are actually quite bright)- at some point the slavish drive to cut costs becomes a mill stone around your neck.

When you screw a supplier (and Im sure they have!!) like Equity, into providing ground handling at these smaller airports you can only expect them to carry such equipment as is necessary for them to support their anchor client – who has probably not had the need for this type of handling in a while. They are not about to invest their resources in keeping your business as they see it only as incremental.

My question is what happens to the cheap handling when SAA dumps Equity next year? I’m reliably informed that their new business pitch is to offer a year’s free handling if an airline moves to them- perhaps the year is almost up???

Time to invest in your infrastructure
Deskjocky is offline