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 & 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 & 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:These measures on the domestic & 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 & more fuel-efficient routes as well as better coordination with the Navigation System providers. Article Source: http://EzineArticles.com/6961924
