As global fuel prices continue to decrease, and look likely to keep falling for the foreseeable future, the fuel levy in countries such as India will remain in place according to government sources.
As the current jet fuel levy makes up almost 40% of airlines’ operational costs, operators must consider other options to manage costs.
Operational messaging costs can quickly spiral out of control in many message platforms. Mandatory messaging increases every year as regulations change across the world, passenger numbers rise and security is tightened.
The air travel industry must maintain a robust infrastructure and certain aspects of operational efficiency demand high messaging volume that can quickly become unmanageable and expensive. It makes sense for airlines to review their traffic profile regularly to avoid duplication and to simplify their messaging infrastructure wherever possible.
Superior Aviation Group, Texas-based aviation supply company with headquarters in China, have announced the formation of AvConsulting Services with a primary objective to provide aviation businesses with support and consultation services for aircraft operations in China.
It is not unusual for aviation companies to branch into consultancy services. ARINC provides consultancy for aircraft messaging and aim to save businesses more than 30% of mission critical messaging exchange costs across the board.
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.
Robert Stangarone, a former aviation industry executive with a respected 40-year career, has announced the inception of a new aviation consultancy firm, utilising a list of experts and colleagues from almost every sector of the industry.
Mr Stangarone offers a global consultancy service, helping operators all over the world with a reliable, knowledgeable network of more than 30 consultants, including former CEOs.
Aviation consultants can help with many aspects of the industry and can assist operators with cost-cutting endeavours for aviation messaging, operational productivity and management systems. Often, aviation messaging can be complex and difficult to understand, particularly with Type B messaging. As millions of messages are exchanged on a global scale every day, it is also difficult for operators to create budgeting.
Aviation consultants can make a significant difference to an airlines’ bottom line when considering operations and what better qualifications are available than decades of industry experience?
The Indian civil aviation ministry has said that it ‘may request banks to lend up to $94 million’ to the ailing airline, SpiceJet in loans to be guaranteed by Kalanithi Maran, the company chairman, in a bid to try to save jobs without directly placing a burden on the taxpayer.
Aviation consultancy firms can often help airlines to cut the cost of operational messaging and communications, but with 24% aviation fuel tax, the financial burden of flight operations can prove difficult.
With a lack of bankruptcy law, and to prevent the repeat of another Kingfisher Airlines failure, the government is also asking its debtors to give them more time to make payments such as airport fees and fuel costs.
SpiceJet made losses of $49 million in Q3 this year in spite of efforts to cut costs and with a net debt that is almost five times as large, the ailing company may find an investor unwilling to step in unless Mr Maran can put together a rescue plan and fast.
SpiceJet has been stopped from taking advance orders beyond 30 days by the airline regulators, but the government wants this to be removed to offer the airline another chance of climbing out of the financial hole that has been growing steadily larger over the course of the year. Crippling fuel taxes and economic pressure could put an end to the carrier, which would place the Indian aviation industry on very unsteady ground.
The government wants to do whatever it can to save the airline in an effort to protect the staff.
We heard today that ARINC, as a part of updates to their web presence, released a new version of their typebcheck site.
The site is focussed on type b messaging consultancy. Aviation messaging is expensive this site has a great calculator tool to see if ARINC can offer any savings. Check the tool out here.