The airlines COVID-19 recovery is going to be a long uphill battle. Airlines need both a strategy for increasing demand, revenue, and profitability, while lowering expenses. The software industry has a great opportunity to provide unique solutions to these unique issues. Some companies will focus on increasing capacity, fuel efficiency, and marketing platforms to improve revenue. ELP Aviation is focusing on strategies to help carriers improve processes, specifically to lower costs.
Once standard operations resume, carriers will still have the same issues as before the crisis. There will still be bad weather, airport closures, and the typical IROPS that affect profitability; those issues will not disappear. In this environment where every dollar counts, any IROPS or inefficient processes can be crippling to the recovery effort.
ELP Aviation is proposing the best way for airlines’ recovery from COVID-19 is to use tools that will lower costs and can be quickly implemented. This will influence the level of profitability right away. Especially during the typical IROPS situations.
With the current conditions, a bad IROPS season can be devastating. We estimate, for US carriers, the standard loss for one cancellation is $30,000 and one delay is $3,500, loss of $18,800/month for inefficient manual processes in your scheduling departments alone. Therefore, carriers can save $55,800 per month just by avoiding 1 cancellation and 2 delays, and improving inefficiencies.
We estimate with the proper package of IROPS tools you can save THREE TIMES as much. That comes out to saving 2 million dollars a year.
Steps For COVID-19 Recovery:
Next, we recommend a full package that includes accurate real-time and predictive legality tools, automated communication tools, dashboards, and standard IROPS recovery tools, such as cancelled flights, reserve self-assignment, open time pick up tools, etc. Each of these tools have been proven to lower the number of cancellations and delays associated with of IROPS as well as normal operations.
We have also found that each carrier has their own unique cost sinking conduits. Finding solutions to those unique problems can be very problematic, costly and take a huge amount of time to produce. However, tools that are specifically built to accommodate flexibility will be key to improving each individual carrier’s cost sinks. These types of products will enable quick implementation and quick effective results.
Finally, we are also recommending custom flexible tools that really get at the heart of the pain points for each individual airline operation. These tools will eliminate your highest loss, will have the largest impact and the greatest ROI.