TheNewLowFare
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- Aug 31, 2005
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Found this in the Southwest website and thought I'd post it here since US is mentioned in the article.
Weary airlines forced to get creative with cost-cutting
By Mike Sunnucks
The Business Journal of Phoenix
Updated: 7:00 p.m. ET Jan. 29, 2006
High jet-fuel costs and tight operating margins in a sector that always seems to be on the edge of a cliff have airlines scouring for creative ways to keep costs under control.
Some of those methods are as simple as removing some cabin light bulbs, using cheaper blankets and mops and less expensive paper for boarding passes.
Other cost-saving efforts are more large-scale, such as loading up on fuel in less expensive cities, changing flight plans to take advantage of wind conditions and using only one aircraft engine to taxi on runways before take-off.
Southwest Airlines and US Airways -- the top two carriers operating in the Phoenix market -- are among the major airlines scouring their operating procedures and business models for cost savings.
Dallas-based Southwest has led the airline industry in keeping costs down in the post-9/11 operating environment. The airline bought substantially more jet fuel in advance than other carriers in recent years, which allowed it to better withstand recent spikes in energy prices.
But Southwest also is making some little changes that result in some not so little savings.
"We switched to a different type of paper for our boarding passes, which resulted in over $700,000 savings annually," said spokeswoman Paula Berg.
Southwest also made a number of other changes that may seem small to the average passenger but help Southwest lower costs.
Those include:
Removing light bulbs from behind the no-smoking signs onboard Southwest aircraft.
Taking tequila and margaritas off the on-board drink menus due to lack of demand.
Switching to less-expensive kinds of mops and blankets, which resulted in savings of $850,000 annually.
Berg said Southwest employees are encouraged to find innovative ways to reduce expenses, and the rank and file have embraced that because the airline has a large profit-sharing program.
"Some of our maintenance employees saw another airline throwing away a scaffolding. Our guys took it out of the trash and turned it into a picnic table and a few benches for their hangar," said Berg.
The airline industry has faced incredible cost pressures in recent years. Jet-fuel prices are high; labor costs are a challenge; and, despite numerous bankruptcies, the sector still grapples with the problem of too many airline seats chasing too few passengers.
That means to stay competitive, airlines need to keep ticket prices low, which is good for the consumer but puts big-time bottom line pressures on the industry.
Tempe-based US Airways also is looking for ways to save money both in terms of flight operations and options directly related to fuel.
US Air spokesman Carlo Bertolini said the carrier has found a number of ways to use less jet fuel and find direct energy savings.
That includes using ground power to cool or heat aircraft cabins before take-off; filling up airplane fuel tanks in cities with less expensive energy prices than other markets and taxiing before take-off with one engine.
"Instead of starting both engines, we can just use one until it's time for take-off," said Bertolini.
US Airways also installed winglets and other fuel-efficient equipment on airline wings to cut down on the wind drag that slows planes and results in more spent fuel.
Bertolini said the airline also changed flight plans to decrease fuel usage by taking advantage of good tail-winds and jet- stream conditions and connecting flights to airports that allow planes to carry less reserve fuel.
The carrier also is charging for in-flight meals and has changed up boarding procedures to save time and increase efficiency.
In addition, US Airways offers employee incentives based on on-time performance, safety and lowering costs.
"Our employees have a great awareness of the importance of keeping costs low and play a key role in doing so," said Bertolini.
I have also heard from my friend that US East has taken out the ovens in coach because they add weight to the cabin. That's why they only serve cold meals in coach. Is this true?
Weary airlines forced to get creative with cost-cutting
By Mike Sunnucks
The Business Journal of Phoenix
Updated: 7:00 p.m. ET Jan. 29, 2006
High jet-fuel costs and tight operating margins in a sector that always seems to be on the edge of a cliff have airlines scouring for creative ways to keep costs under control.
Some of those methods are as simple as removing some cabin light bulbs, using cheaper blankets and mops and less expensive paper for boarding passes.
Other cost-saving efforts are more large-scale, such as loading up on fuel in less expensive cities, changing flight plans to take advantage of wind conditions and using only one aircraft engine to taxi on runways before take-off.
Southwest Airlines and US Airways -- the top two carriers operating in the Phoenix market -- are among the major airlines scouring their operating procedures and business models for cost savings.
Dallas-based Southwest has led the airline industry in keeping costs down in the post-9/11 operating environment. The airline bought substantially more jet fuel in advance than other carriers in recent years, which allowed it to better withstand recent spikes in energy prices.
But Southwest also is making some little changes that result in some not so little savings.
"We switched to a different type of paper for our boarding passes, which resulted in over $700,000 savings annually," said spokeswoman Paula Berg.
Southwest also made a number of other changes that may seem small to the average passenger but help Southwest lower costs.
Those include:
Removing light bulbs from behind the no-smoking signs onboard Southwest aircraft.
Taking tequila and margaritas off the on-board drink menus due to lack of demand.
Switching to less-expensive kinds of mops and blankets, which resulted in savings of $850,000 annually.
Berg said Southwest employees are encouraged to find innovative ways to reduce expenses, and the rank and file have embraced that because the airline has a large profit-sharing program.
"Some of our maintenance employees saw another airline throwing away a scaffolding. Our guys took it out of the trash and turned it into a picnic table and a few benches for their hangar," said Berg.
The airline industry has faced incredible cost pressures in recent years. Jet-fuel prices are high; labor costs are a challenge; and, despite numerous bankruptcies, the sector still grapples with the problem of too many airline seats chasing too few passengers.
That means to stay competitive, airlines need to keep ticket prices low, which is good for the consumer but puts big-time bottom line pressures on the industry.
Tempe-based US Airways also is looking for ways to save money both in terms of flight operations and options directly related to fuel.
US Air spokesman Carlo Bertolini said the carrier has found a number of ways to use less jet fuel and find direct energy savings.
That includes using ground power to cool or heat aircraft cabins before take-off; filling up airplane fuel tanks in cities with less expensive energy prices than other markets and taxiing before take-off with one engine.
"Instead of starting both engines, we can just use one until it's time for take-off," said Bertolini.
US Airways also installed winglets and other fuel-efficient equipment on airline wings to cut down on the wind drag that slows planes and results in more spent fuel.
Bertolini said the airline also changed flight plans to decrease fuel usage by taking advantage of good tail-winds and jet- stream conditions and connecting flights to airports that allow planes to carry less reserve fuel.
The carrier also is charging for in-flight meals and has changed up boarding procedures to save time and increase efficiency.
In addition, US Airways offers employee incentives based on on-time performance, safety and lowering costs.
"Our employees have a great awareness of the importance of keeping costs low and play a key role in doing so," said Bertolini.
I have also heard from my friend that US East has taken out the ovens in coach because they add weight to the cabin. That's why they only serve cold meals in coach. Is this true?
