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Ways Independent Airlines Can Compete with Big Competitors
by James Crier Tue, 01/31/2017 - 15:09
With the industry's largest competitors seemingly able to offer endless low priced flights, it may come as a surprise to find out that airline profits tend to be minimal. As such, these huge companies are constantly in search of ways to cut costs, or else, adding lots of charges for things that were previously included as standard, like baggage or choosing your seat.
While small airlines could consider similar tactics and add on extra costs, if they want to compete in a saturated market, this probably isn't the best idea. Instead, here are some clever ways independent airlines can save money, to compete with industry giants.
Fly at Slower Speeds
Records show that despite advances in technology, flights are getting longer. This is due to the price of fuel. Airlines are continually looking for ways to reduce costs and increase profits and as one of the largest expenses, fuel budgets are being cut across the board. So, although flying at lower speeds increases journey time, it also reduces fuel usage.
Reduce the Weight
Similarly to flying at lower speeds, decreasing the weight on board can reduce the amount of fuel used, resulting in massive savings. There are a number of ways this can be achieved, from installing lightweight seats and using slim-line beverage trolleys, to serving cold food only, which reduces the need for heating equipment.
Add More Seats
Most flights are lacking in leg room, something that's particularly true when it comes to some of the leading budget airlines. However, this is one of the biggest techniques they use to save money. It's quite simple: by adding more seats on their planes, an airline can fly more passengers per flight, thereby increasing company profits.
Try Different Suppliers
No matter the industry, when you own a business, it's always good to browse suppliers. This is especially true for aviation, when profit margins are so slim. To save money, get quotes from multiple suppliers and then use them as leverage to negotiate the best price. You can also use several specialist suppliers for items like aviation accessories (such as Flightstore Pilot Supplies) or duty free items.
Use Secondary Airports
Something most people don't realise is that large international airports carry a hefty fee for airlines wanting to fly and land on their runways. One of the easiest ways to avoid this expense is by operating from smaller airports, as a secondary airport usually has lower fees, allowing you to compete with larger companies for a lesser price.