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Airline
The global airline industry continues to grow rapidly however it is hampered by slim profit margins forcing carriers to focus on both cost reduction and revenue growth. Airlines need to make large and ongoing improvements to operate more efficiently. With few exceptions, the most successful airlines are those with the strictest cost controls. Cost reduction can also be achieved through enhancements in organisational structure, operating model, and work practices. In particular, airlines have often built up complex processes over decades that cost far more than they should be.
In response to these trends, we believe that airlines must take several specific measures to remain competitive:
- In reducing expenses, airlines must determine not only how far to cut, but also where to cut. A critical part of the process is identifying the set of essential capabilities that differentiates them from their rivals in the view of customers. In many cases, those capabilities may require renewed investment. Yet management needs to be ruthless in cutting costs in all other areas that are not relevant to safety, reputation, branding, or customer value
- Partner strategically – airlines should continue to seek partnerships that can complement and even improve what they do best, as well as close obvious gaps
CustoSat can provide help with these measures so airlines can maintain or improve their relationship with customers, cut costs where they need to and improve their performance – with the right partner.