Budget airline EasyJet
is carrying out an IT-driven strategic shift in its aircraft management, back
office and customer-facing operations to cut fuel costs and grow revenue.
After an internal review of systems, processes and manual procedures, the
carrier devised a strategy to optimise aircraft maintenance costs and improve
customer demand for products and services.
EasyJet’s IT director Tim Newing is challenged with introducing innovation
while maintaining the airline’s low-cost policy.
“If I look back to two months ago, perhaps that was not right at the top of
my priorities, but now there is much more emphasis on understanding how we can
save on fuel. That has become a very important part of the IT agenda,” said
Newing.
Central to the review process are systems related to overseeing aircraft
engineering maintenance and servicing. Newing is negotiating with a supplier for
dedicated software to change the business processes.
“Most of the engineering is outsourced, so we rely on the suppliers to tell
us when the aircraft needs to have work done and decisions related to any
improvement or servicing work,” he said.
“We want to bring that capability in-house, with our system connecting to
that of our suppliers, so we can manage resources more tightly and get cost
savings. The intention is not necessarily taking over the whole process, but
having management oversight of what they are doing.”
Part of the cost control strategy is a new flight planning system. From
November, EasyJet hopes to tackle delays and optimise fuel consumption by
choosing more efficient routes. The planning system is based on a package
supplied by Lido, part of the
Lufthansa group.
EasyJet is a keen proponent of packaged systems, but is not too concerned
about going for large mainstream suppliers, and recently chose a package from
Agresso for its financial
management.
“We tend to go to the people who sell their products in a cost-effective
manner. We don’t necessarily go for the lowest price, but for the best value, on
a cost of ownership basis,” said Newing.
“We probably have one of the lowest IT cost basis within a major airline and
will continue to drive that down.”
Cost-cutting is also expected to stem from office applications. “I am very
interested in the potential of open source products in applications such as
public mail services and office-type software, instead of providing everyone
with a licensed version,” said Newing.
“The only problem is I am not yet certain that these applications are mature
enough for our environment.”
Improving business intelligence has become a priority, providing EasyJet with
a clear picture of demand, allowing it to manage resources accordingly and use
the data to intensify marketing for less popular routes.
Automation is also part of EasyJet’s plans to reduce overheads involved in
managing processes between the ground and work carried out by its crew.
From next month devices will be piloted in Manchester to automate data
analysis and restocking of items sold on the plane. And staff at Luton airport
will begin using PDAs with belt-mounted printers, to enable charging for excess
luggage as passengers queue for check-in.
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