Case study - Airline saves on cost of livery
European regional airlines provider
- Flying 5 million+ passengers a year on over 100 routes
- A fleet of over 70 aircraft
- A long-term incumbent supplier tends to become comfortable when not carefully managed.
- Lack of strategic contracts, regular market research, and benchmarking by the customer/client was leading to consistent price increases over time.
- The above two points were addressed with urgency in this project.
- A price reduction of 29% was achieved by direct negotiation with the incumbent in the short-term
- New material and technology was identified by market research.
- A tendering activity was completed with leading suppliers in the market.
- The most capable v competitive supplier was selected, and a 3+2 year contract was agreed with a Termination for Convenience clause in favour of the client.
- A total of 45% combined cost and price reduction was achieved.
- A lead-time reduction of 20% was achieved.
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