Cheap International Flights Through Higher Cost Efficiencies

Cheap International Flights Through Higher Cost Efficiencies
By Yash Pal
Since the passengers are increasingly looking for cheap international flights, it is not possible to meet the increasing demand without improving the cost efficiencies of the network carriers. It is the network carriers which provide the long-haul or even the medium-haul services at an international level, as against the low-cost carriers which provide the services of short-distance travel. Therefore, for any sustainable effort at providing cheap international flights, it is important that the network carriers be advised on the methods of achieving the higher cost efficiencies. For this purpose of helping the airlines achieve efficiencies, IATA, the organization representing close to 85 percent of airlines worldwide, has been carrying out certain measures or programs since 2001. Let us have a look at these measures and the rationale for their introduction:
1. Simplifying the Business Program: This is the program which focuses on four key operational areas which are expected to not only bring down the costs but also to improve the service for the passengers. These four areas are:
a. E-freight: This part of the program calls for total elimination of the paper work from all aspects of airline freight operations, be it the carriers, freight forwarding companies, shippers or custom authorities. The thrust is on the electronic messaging instead of papers being used for freight operations.
b. BIP: Also called the Baggage Improvement Program, this aims to reduce the instances of baggage mishandling which results in annual losses of billions of dollars to the industry. With proper baggage management procedures and practices on-ground at about 200 airports worldwide, it is possible to reduce these unwanted losses to the tune of billions of dollars.
c. Fast Travel: This caters to the need of the passengers to make their own choices and exercise their self-service options. This has been operational in the six areas of the airport journey of the passenger and the focus is on creating uniform recommended practices and standards which make it possible travel fast.
d. E-Services: Using the internet, it has been suggested to provide inter-linkages among the different distribution channels in order to facilitate the ancillary services of sales and collection. These measures on the domestic and international flights are expected to significantly reduce the costs.
2. Campaigns Centered on Fuel Efficiency: IATA has also asked airlines to focus on inculcating fuel-efficiency measures. This includes taking to the shorter and more fuel-efficient routes as well as better coordination with the Navigation System providers.
3. Focusing on the costs of infrastructure: At what cost is the airport or its terminal going to be built and exactly how are its capital costs going to be apportioned for the next few years determines the charges which the airlines will have to pay as terminal charges. This is just one instance of how the cost of infrastructure affects the operational viability of the airlines. Similarly, there are a number of infrastructure costs which adversely affect the prices of the domestic as well as the international flights. By focusing on these costs and their apportioning over a period of a few years, IATA seeks to bring down these expenses making cheap international flights even more likely.
Yash Pal writes on a range of travel-related subjects. Currently employed with a leading online travel portal of India, he writes on domestic and international flights, hotels and destinations. Find your cheap international flights here.
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