How to decrease the handling costs?

While the aviation market is growing continuously, airports, airlines, and ground handlings should cut their cost, increase their profits, while maintaining their customers’ satisfaction to remain in the big competition.

Among various costs for airlines, Fuel, Labor, Lease & Depreciation, Aircraft Maintenance, and Airport Handling Charges have considerable fractions of total costs. Ranking the expenses of various terms is different from an airline to airline and airport to airport. These are also different in each country or even region. For instance, the cost of labor in east Asia can be half as the cost in North America or Europe. As a case of study, various costs of Singapore airlines in 2017 and 2018 and the contribution of each term in overall cost are shown in the below figure.

Source: Singapore Airlines Website

As seen, handling charges have about 8.5% share in the total cost of Singapore airlines, which can increases to 10% share for different airlines and countries. The considerable share of handling charges for airlines, airports, and ground handlers represents it as a potential area to manipulate and decrease the total costs of these operators.

Airports and ground handlings can reduce their costs by replacing manual passenger check-in with a cost-effective Departure Control System (DCS). Such a system can effectively decrease the handling charges for airports and ground handlers by speeding up the check-in process and reducing the staff numbers and working hours while enhancing passengers’ satisfaction.

Generally, implementation of a DCS in an airport has a fixed cost for implementation and a variable fee for check-in each passenger; the latter is mainly arisen from maintaining, sending or receiving different kinds of massages, hosts, et al.

ABOMIS DCS is a practical and profitable solution for not only the operators who use manual systems for passenger handling but also ground handlers, airports, and airlines who want to change their DCSs to cut their costs considerably while enhancing and upgrading their operations. With availability both on cloud-based or locally hosted, ABOMIS offers a tailor-made solution with various modules and benefits with most compability with existed infrastructure used by airports and ground handlings, reducing the implementation cost.

If you are interested in learning more about ABDCS, you may check:

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