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IATA AGM: ?Simplifying the Business? savings becoming reality

9th June 2009 - 11:38 GMT | by The Shephard News Team


Airlines are realising considerable savings as a result of IATA’s ‘Simplifying the Business’ (StB) programme. So declared programme director Philippe Bruyere during the IATA AGM in Kuala Lumpur.

In 2008, the switch to 100% e-ticketing brought savings of $3 billion, with a further $1 billion coming about via the introduction of Common Use Self-Service (CUSS) kiosks. Around 130 airports have implemented CUSS kiosks so far and increased adoption will bring further savings across the industry.

Bruyere pointed out that the next four projects, once completed, could save $10 billion a year industry-wide. “The first of these – and the next mandated – is to achieve 100% BCBP (bar-coded boarding passes) by the end of 2010,” he explained. “Current usage is around 59% and we expect that to reach 78% by the year-end. Assuming that all airport-issued passes will be BCBP and there is 20% of check-in done on the web and 5% by mobile phone, the savings should amount to $1.5 billion by the end of the project.” Among the airlines which have achieved 100% BCBP so far are Frontier Airlines, Skyways and Malmö Aviation.

The Fast Travel project, which aims to provide more self-service programmes for passengers, is progressing well, according to Bruyere, while the Baggage Improvement Programme (BIP) is on track to cut mishandling by 50% in 2012. “This is so important to prevent money leaking away. Mishandled baggage cost the industry $3.3 billion in 2008 and $3.8 billion the year before that,” Bruyere noted. “We expect more than 200 airports to be implementing BIP practices by 2012.”

The fourth StB project under way is e-freight. “This should bring $4.9 billion in savings per year,” Bruyere indicated. “Moreover, by making the freight industry paper-free, the use of more than 700,000 tonnes of paper per year can be eliminated.”

Progress here is also living up to expectations. “Eight out of the top 10 countries by cargo volume are e-freight live already,” Bruyere stated.

Bernie Baldwin, editor, Low-Fare & Regional Airlines/
Kuala Lumpur

The Shephard News Team


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