Guidance Material and Best Practices for Airline Operational Cost Management (AOCM)
The second edition of the Guidance Material and Best Practices for Airline Operational Cost Management ('AOCM Book') contains revised content and additional chapters on Operations Control and Operations Strategy and Planning.
An essential reference for airline cost management
This guidance material manual was created with one goal in mind: to aid airlines in developing an effective cost management program. More specifically, a program that can identify, quantify and prioritize opportunities to control operational costs throughout the broad spectrum of the operational and planning activities. As airline costs and revenues continue to be dramatically impacted by worldwide events, this manual is essential for airlines that are seeking an effective cost management strategy to remain ahead in the long run. Divided into different sections, this manual will cover a variety of topics such as Flight Operations, Technical Operations, and Operations Strategy and Planning. Remaining consistent with IATA’s goals, this manual will serve to add value to any airline’s operations.
Who should read it?
The AOCM Book is recommended for all management personnel and cost reduction specialists involved in designing operational requirements, purchasing goods and services, and managing operational performance and product delivery.
In this second edition, this manual addresses:
- Operational Cost Management
Airline operational budget, definitions of cost items and scope, financial vs. management accounting
- Approach and Methodology
Airline key metrics related to cost management, generic 'ABC Airlines
- Flight Operations
Operations management, productivity, crew training
- Technical Operations
Maintenance cost management, program optimization, maintenance planning, supply chain, inventory management
- Ground Operations
Operational efficiency, manpower planning, training, health and safety, contract services and outsourcing
- Operations Control
Normal operations, IRROPS cost measurement and cost reduction
- Operations Strategy and Planning
Concept, components, organizational structure and processes, value creation
- Implementation of Operational Cost Management Measures
Organizational requirements, change management, continuous improvement process