Commercial Aviation: Cost Reduction

Cost Reduction

Seabury Group has been a guiding partner helping major and medium-sized airlines achieve dramatic cost reductions. Clearly, commitment to continual cost improvements distinguish successful carriers in this challenging environment from their competitors, Our rigorous analytic capabilities, coupled with unparalleled industry knowledge, can help prepare airlines for diverse financial challenges including the appearance of new competitors; shifting macroeconomic drivers and passenger price-elasticity.

Key services are:

Maintenance and ground handling

Seabury is a recognized leader in minimizing maintenance and ground-handling costs. We develop transformation strategies and action plans that renew entire organizations or streamline specific units within a larger company. All our recommendations reflect rigorous data analysis and extensive experience in maintenance. We often assist clients as they implement our recommendations.

Procurement

Excessive supply chain costs are common to aviation companies, weighing on their overall performance. Seabury can significantly reduce the burden, analyzing the total price of supply chain decisions, including accounting costs carriers or MROs may be unaware of. Our recommendations for new supply chain and inventory management approaches have created substantial value for airline and MRO clients, who have also frequently engaged us to implement our suggestions. Seabury overhauled one major carrier’s entire supply chain organization; we’ve helped other clients outsource the management of their consumables and expendables and rationalize the cost and distribution of parts.

Contract negotiations

Seabury’s strong analytical approach bring additional insight to clients as they negotiate contracts. We show how contract provisions might affect the organization over time, and provide negotiation tactics that benefit the bottom-line. Frequently we assist dynamic and interactive negotiation processes ensuring clients achieve best economic results. Our detailed models also enable clients to easily compare competing bids, even when a potential supplier is in-house.

Labor initiatives. Links to the Labor Transformation page