The aviation industry has been seriously affected by the COVID-19 pandemic, for the next 18 to 36 months demand will continue seriously constrained, occupancy levels will be below break-even points.
Survival depends on answering these questions correctly:
1. What to do to make limited travelers prefer to fly with us?
2. What to do to lower costs, increase productivity and improve break-even points?
3. What can we do to fund the losses we probably have?
Here are some ideas of how we can contribute to the solution of these riddles:
What to do to make limited travelers prefer to fly with us?
We offer you our solutions and services for Analytics and Business Intelligence, lets explore who your customers have been, where and how often they have flown, the reason why they did, under current conditions who will travel? Let's look at the information contained in the reservation and loyalty systems.
Providing flight cancellation and change guarantees or sending customers emails with sanitary measures is very important, but it won't be enough. We're all doing it, customer knowledge and personalized and targeted marketing will make a difference, but it needs data and analytics.
What to do to lower costs, increase productivity and improve break-even points?
a) We offer you an integrated solution for Crew Planning & Tracking, Fleet Maintenance, Fleet Assignment and Ops Control. You probably have solutions that address these critical tasks, but they may not be integrated into the same application, and some of them may be outdated or ineffective.
Having the personnel involved in the operation, access the same database at the very moment the events occur, contributes to the effectiveness of the actions taken, whether be in planning times or on the day of operations, it will increase productivity and lower costs.
Integrated data and applications also help to ease the analysis of results, deviations and setbacks, we offer you our Analytics and Business Intelligence solutions and services, to continuously seek improvement in performance.
b) Pay as yo Go, we offer you our applications and infrastructure as a service in Oracle Cloud, pay only for what you consume.
Pay as you Go, allows us to convert into variable costs IT operating expenses that are now fixed and zero capital expenditures, contributing to the reduction of the break-even point and not to press the cash flow with IT investments.
Rates per leg, airline or hours of service and adjustable by volume. Let us surprise you!
c) Outsourcing, explore the possibility of delegating to our specialists tasks that you do not need to do continuously but that require talent and knowledge. It is likely that the constraint of operations generate conditions like this.
Consider that incorporating into payroll, specialized and competent personnel, capable of solving problems, but working for interrupted periods of time is costly and increases fixed expenses. Very often the people who occupy these positions are unskilled and when they are, they are often assigned other tasks for which they are not competent.
What can we do to fund the losses we probably have?
You will most likely have to raise capital among shareholders, financial markets, bank loans and maybe receive government support.
You will have to convince potential investors and creditors that you have a strong business plan, the answers you submit for the first two questions, above, are the key to access capital. The strength of your financial sheet will only mitigate or increase risks, but what is really important is actions in the face of the crisis.
We know that the offers we are making are just contributions to an action plan that requires many more.