loggerhead
1st Nov 2001, 19:07
These are troubled times, and we all know the problems facing our industry.
But what, if any fundamental changes can a relatively small airline i.e. JMC, MON, AK2. make to save money. I’m not talking about making people red***ant (sorry, Swear word)…but suggestions like shutting down one engine whilst taxiing (see tech log forum 16/11/01).
Any ideas Guvnor?
A businees consultant once told me that when a company asks it's employees to pay for their tea and coffee it's time to look for another job because they're already bust.
Genghis the Engineer
2nd Nov 2001, 11:48
I've run two departments that were losing money (when I arrived, not I hasten to add when I left). The old thing about cutting costs is largely bo**llocks.
If there is a whole area losing money (let's say the airline owns a handling agent that is more expensive to run than buying services from somebody else) don't try to make it efficient, shut it down. But, this is only in extremis.
In the modern world, very few companies can save significant money by variations on the "turn the lights off, conserve loo roll" approach. The only way in my experience is to enhance the service you provide, get bums on seats, and improve income substantially. Yes, stay efficient whilst doing so, but it's income (usually through maintaining or enhancing quality) that matters - if you keep that up you won't lose money.
BA and Virgin are two of the most profitable airlines, just look at their approach. Then think back to Dan-Air before it got subsumed.
G