All Posts By

Jordan Abbruzzese

The Rising Cost of Flying and increasing Airline ROI

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From journeying abroad for pleasure, to bleisure travel (the new term for extending a business trip for leisure), global trips are on the rise. Planes are transporting more people than ever before, and over the next 20 years, airlines are projected to double the amount of annual flights – accompanied by rising ticket prices and other fees. But if an increasing number of travelers are continually paying more to fly, then why are airline profits free-falling?

According to the IATA (International Air Transport Association), airlines globally made less money in 2018 than 2017. From 2017 to 2018, airplane arrival delays went up 26.8%, and the number of cancelled flights increased by 36%. (United States Department of Transportation)

Variables contributing to a decreasing ROI for airlines include: 

  • Paycheck overpayments when shifts are not logged correctly
  • High turnover among ground crew employees and schedulers
  • Keeping a larger number of reserve pilots than needed
  • Using more time and resources while scheduling air and ground crews during an IROP
  • The increasing cost of fuel for American airline carriers (up 4% from 2017 to 2018)
  • Delays and cancellations caused by national disasters and weather events 

Sound familiar? There is a way carriers can handle how they deal with these challenges. By investing in innovative technology that provides control over most of these diminishing factors of revenue, airlines can turn things around before it’s too late.

With Ascend and RosterApps, ARCOS resource management solutions can provide ROI that can raise any airline’s bottom line, with benefits like:

  • Cutting admin costs and time
  • Completely eliminating the need to pick up the phone and make manual calls
  • Operational efficiency gains and reduced turnover
  • Giving your employees the tool they need to do their job

Don’t wait to start seeing a return on your investments in 2019 and help make this year your most successful yet.

The Ever-Evolving Role of Airline Labor Rules and Regulations

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Pilot shortages. Union trends. Grievances. These themes wove their way through headlines in 2018, and will have a place in airline news for years to come. With the need for more pilots, and an increasing spotlight on labor rules and regulations, what kinds of industry union trends are emerging?

A recent report from CAPA (the Centre for Aviation) revealed that during the first half of 2018, published aviation new articles had an increase in the use of the word “strike”. Their summary report also highlights that as a result of the pilot shortage, both pilots and unions are feeling more confident.

Other findings from CAPA’s report include:

  • Globalized business models are challenging unions
  • It’s crucial to ensure that airlines and unions have needs that align in the industry’s best interest
  • The current pilot supply is not keeping up with the demand for new pilots

Over the past five years, the airline industry has also seen an increase in mobilization and a defense of a right to organize among ground crews and subcontractors. One common theme between airlines, unions, and public officials alike is safety for travelers.

According to an article on skift.com, a boost in pay and more training opportunities for airline employees contributes to safer conditions for passengers and an elevated employee retention rate. If an airline has high turnover, then employees may be less prepared to handle incidents. This factor alone can give unions the upper hand when advocating for policy changes.

As labor rules and regulations continue to adapt and change, it can be extremely difficult for schedulers to remember who they are allowed to call when a spot opens for both flight and ground crews. Our research shows that schedulers go through a variety of tedious processes to fill open spots – from pouring over paper lists, folders, and complicated spreadsheets, to shifting through files in large boxes to confirm their union rules and that they are calling the correct employees.

ARCOS solutions are configurable to your specific labor rules for flight and ground crews, eliminating the need to determine who you have to call, and automating the manual call process all together. With evolving rules, pilot seniority, paid time off, and sick leave – you have enough to remember. Let our software do the work for you and keep your unions, and airline happy.