From overweight hostesses to food supplies have come under the axe, for airlines in India are desperately trying to bring down the cost of operations. The Indian aviation industry faced turbulent times in 2008, but for the last few months, things are starting to look up. The year was put through a mega alliance, while nearly all domestic airlines reduced their fares.
According to IATA, the Indian players are likely to account for $1 in every $3 of losses in the global airline industry this year. It is an overwhelming amount for a nation that accounts for only 2% of the world air traffic. All airlines have suffered major losses in revenue… but have managed to stay afloat by sticking together, with the Government moving in to help.
The coming year will hold some promise if airlines tighten their own seatbelts, by being more realistic with their expansions and hiring.
Cut IT budgets?
In a market environment as volatile as this, organizations including airlines use all means to improve efficiency, which is critical to their performance and profitability. Profitability being the prime focus for all airlines, the temptation to reduce or put off technology investments is real. Yet, as cost is a major concern, the cost of doing nothing for the end customer is far greater and potentially damaging in the long run. Organizations that fail to see technology as an investment run the risk of steadily increasing overheads with inefficient systems that disrupt optimal use of resources and opportunities.
IT – a bailout option
Innovative IT options can boost airline profitability. Through integrated, multi-hosting technology solutions, airlines can eliminate redundant processes and procedures, increase efficiency, and reduce the risk of errors, thereby lowering cost of operations and scaling productivity. This will enable devoting lesser time in administrative and operational issues and more time to concentrate on strategies and utilizing opportunities, with the goal of improving results. In the absence of such technology, manual processes slow down operations and limit the airlines’ ability to follow through on their investment directives.
Technology advancements will continue to help in increasing efficiency, and organizations that ride on new technology will be able to navigate in these uncertain economic times and emerge stronger. After all technology stabilizes and transform businesses.
The society as we say is an intricate delicate web of connection. A person is carried away by thought- be it social, economical or politcal, revealing with it the reflection of its cause. One such reflection that we see is economical break down. The IT recession manifests itself in big and small ways- Big way being a cost cut and the small way that Companies have found a safe Way to eliminate Low Performer. India acts as an edit pad for the global economy and thereby the pad can either remain empty or with few word or filled with words- Meaning companies in total mess, few who survive with small cost cuts and those that remain strong. Longer working hours,cost saving measures makes it similar to the story of a man who was selling pancakes in hot sun and getting nickels just enough to buy pancakes to sell the next day. Its time to think and act smart by being concentrated in a particular place or community till you get a better choice, but you never know if the next place you move would be the same place where once upon a time hot pan cakes were sold.