With crew-related costs typically representing 10-20% of an airline's cost structure, the crew supply chain should be one of the top concerns of the airline C-suite. However, many chief executives, chief financial officers and chief operating officers would love to ignore not only their crew supply chain, but the entire crew management function.
For them, crew management usually means having to deal with endless complaints or, worse, the time-sink of industrial relations. However, carriers that aggressively focus on all facets of their crew management function can reduce crew costs more than a fifth.
Through work with our clients on the crew supply chain, Oliver Wyman identifies five specific steps to help airline executives reduce this economic waste and capture up to four margin points. These include:
- Manage the supply chain as an integrated supply chain
- Measure, measure, measure
- Ensure you have robust end-to-end processes…and follow them
- Pay attention to the crew supply chain organization
- Invest (cautiously) in technology
Download the report to read the full story published by Airline Business.
