Operational improvement

PIP knows airline operational improvements and has the experience to deliver them:

Revenue management

  • Customer offering: 2.5% increase in leisure segment revenue at an international airline by increasing ancillary and buy-up revenue and revising fee policies
  • Sales channels management: 7% revenue increase through initiatives targeted to improve B2B direct ticket sales

Cost management

  • Pilot and crew productivity: 1.4% annual labour saving at an airline group through improved scheduling, personnel management and call-out discipline
  • Catering optimisation: 76% reduction in waste in 10 weeks through implementing effective KPIs
  • Labour cost reduction: 12% improvement in labour efficiency through Lean improvements

 

Organisation

PIP has delivered organisational change projects for airlines:

  • Organisation design: 4% annual savings in airline operations and support staff at a full-service airline through more effective organisational design and rightsizing – 60% delivered in the first six months, with full savings delivered over 14 months
  • Back-office efficiency: 9% cost reduction through centralising numerous airline back-office functions, with an additional 5% reduction in building and office costs
  • Benchmarking and redesign of C-level organisation for a major Asia-Pacific airline

 

Capital efficiency

PIP has identified and implemented numerous capital efficiency initiatives in the industry:

Fleet planning

  • Fleet rationalisation: 16% annual savings on a number of routes from aircraft type consolidation, achieving synergies and improving ASK
  • Ownership vs lease: 15% ACMI reduction from identifying the optimum aircraft ownership model for a network
  • Maintenance: 6% reduction in heavy maintenance premiums through optimising aircraft flying time

Network planning

  • Migrated from point-to-point planning and route profitability to integrated network planning and profitability
  • Redesigned the Management Operating System for long-term network planning through to day of operations

 

Sourcing and supply chain

PIP has a well-developed sourcing practice with a proven record of performance:

  • Rapid strategic sourcing: Delivered 4.4% in vendor and category sourcing savings over 15 months for a major airline through effective rapid strategic sourcing
  • Contractor management: 6% reduction in ground operations contract costs through improved go-to-market strategy
  • Warehouse and inventory optimisation: 31% reduction in inventory holding and management costs through improved warehousing practices
  • Category sourcing: 14% savings on professional service contractor spend for a client with an already strong cost management culture
  • Global sourcing: 17% annual reduction in global logistics costs for a global media firm through rigorous competitive sourcing and achieving more favourable pricing terms