All across the globe domestic airlines are experiencing difficulties with rising operational costs, airport fees and high insurance to name but a few. This is no more apparent than in Nigeria, where the newly appointed manager of Dana Air has spoken out this week about the need for government reform to encourage ‘friendlier policies’ for the aviation sector.
Mr Mbanuzo highlighted that domestic airlines pay approximately 35% in operational charges, facing challenges such as expensive aviation fuel, fluctuating currency exchange rates and the regime of VAT on air transport.
While it is clear that airlines need some help from governmental policy to stay afloat, cost cutting measures can be put in place in many areas, from aviation messaging to streamlined operations. An aviation messaging audit can reveal areas that can be improved, such as mission-critical transmissions using Type B formats and can potentially save up to 60% for the aircraft operator.
In a highly driven industry, cost efficiencies must be maximised in order for bottom line targets to be met, while maintaining reliability.