The Guidance Material and Best Practices for Airline Operational Cost Management (AOCM) provides a comprehensive reference tool to assist airlines in developing an effective cost reduction program. It allows to identify, quantify and prioritize opportunities to reduce operational costs throughout the broad spectrum of airline operational activities.

A reading must for all involved in cost reduction and operations

This book provides essential guidance for all management personnel and cost reduction specialists involved in designing operational requirements, purchasing goods and services, as well as, managing operational performance and product delivery.

Benefits

1. Identifies potential cost saving opportunities
2. Provides a “best practice” or comparative benchmark against similar carriers in the industry
3. Addresses current expenses for which a typical operations manager, department head, or executive has direct responsibility for on a day-to-day basis

Content overview

In this first edition, this guidance material addresses:

1. 1. Flight Operations (includes cockpit and cabin crew)
   Operations Management, Support Function and Staffing requirements, Administrative Overhead, Crew Planning and Scheduling, Crew Training
2. 2. Technical Operations
   Maintenance Cost Management, Program Optimization, Maintenance Planning, Supply chain, Inventory Management
3. 3. Ground Operations
   Operational Efficiency, Manpower Planning, Training, Health and Safety, Contract Services/Outsourcing

It is recognized that all aspects of Operational Planning, from longer-term Fleet and Network Planning to daily Operations Control and Dispatch Flight Planning, can have a major impact on operational costs in all functional areas. However, these corporate and internal business relationships are quite complex, and vary significantly from airline to airline. Future editions of this IATA Guidance Material will address Operational Planning and related cost impact as a major focus area.