Budgeting, Cost Improvement & Financial Management
Assisting new airline projects with proven set-up planning, methodology and tools.
Expert budgeting, cost management and financial management provide an airline with the confidence to make the right strategic and tactical decisions, giving your management team an accurate dashboard of information focusing on your planning horizons.
We have valuable experience in the specialised area of airline and aircraft economics. We build airline budgets; provide scenario analysis, run sensitivity analysis for various cost parameters (such as fuel burn, interest rates, maintenance costs etc.) and revenue parameters (ticket yields, demand, cargo etc.) as well as growth rates and other elements. This is communicated in straight forward and transparent budget documents.
Effective cost improvement is essential to any airline’s success story. A pledge to continuously seek cost reductions is what separates the successful carriers from their peers. AviaSolutions can help your airline achieve dramatic reductions in the levels of key cost drivers – such as crew costs, fuel, maintenance costs and aircraft lease costs. We benchmark client costs and productivity levels to best practices at other airlines worldwide. We can provide negotiation support advisory services to ensure you are getting the best possible outcome in your procurement activities. Our analytical capabilities, coupled with strong industry knowledge, can help organize airlines for the financial challenges of today’s market and secure a competitive edge.
We have extensive experience of due diligence and refinancing through delivering a range of bespoke business planning projects including the implementation of commercial strategies, benchmarking studies, risk planning and the development of pricing models.
Unlike many of our competitors, we don’t believe in a ‘one-size fits all’ approach to our analysis. The analytical techniques that we use will always be designed to ensure that the unique circumstances of each airline are taken into consideration, with focus on the most important value drivers. Our due diligence efforts focus on the airline’s financial condition its operations and its commercial performance. To support our work, we have developed in-house databases and models covering a range of financial and operational performance indicators.
AviaSolutions also advise airlines on buy or lease decisions concerning new aircraft. For airlines wishing to buy aircraft using financing, we are well placed to suggest the most suitable and cost efficient financing vehicles.