5 Ways Outsourcing Can Help Aviation Companies Reduce Operational Costs

Every business looks for ways to reduce running costs while maintaining quality service. In aviation, it is the same.

The aviation industry faces constant pressure to maintain profit while following strict safety, compliance, and operational standards. Managing costs effectively without compromising service quality is a critical challenge. One proven strategy is outsourcing non-core operations to specialised partners.

By taking advantage of Business Process Outsourcing (BPO), aviation companies can focus on their primary mission—delivering exceptional passenger and cargo services, while reducing operational costs.

This article will explore 5 ways outsourcing can help aviation companies reduce operational costs and improve overall efficiency.

Why Does Airlines Need to Outsource

Outsourcing is important for every business, but it is even more crucial for airline operators because their industry is very niche and busy. This is not just about cost reduction; it’s about improving agility, focusing on their areas of expertise, and staying competitive in a fast-evolving industry. 

What makes for a top quality customer experience is when;

• Booking a ticket is easy as pie

• Tickets are easily delivered on mobile like WhatsApp as opposed to email alone

• Online and offline check-in process is hassle-free

• The boarding pass is quickly handed over

• There's no loss or delays during luggage pickup.

Whether “above wing or below wing”, both works can be outsourced. And by outsourcing these non-core operation areas, aviation companies can channel their resources to the right core areas that define their business, and where it is most needed.

These are the five ways aviation companies can outsource to reduce operational costs.

Optimise Workforce Expenses

Outsourcing aviation staffing is a great way to reduce the cost of operation. Hiring, training, and retaining skilled personnel is expensive, and time-consuming, especially in highly specialised fields like aviation. Outsourcing workforce management to experienced partners allows companies to access a pool of trained professionals without the burden of full-time employee costs such as benefits, insurance, and training programs.

For example, ground handling services such as baggage handling, cargo handling  passenger assistance etc, customer support, and even certain technical roles can be outsourced to experts who provide flexible and scalable workforce solutions.

This reduces fixed costs and allows aviation companies to adjust staffing levels by either scaling up or down based on seasonal demands, such as peak travel periods.

Lower IT Infrastructure and Maintenance Costs

For many industries, managing maintenance costs internally can be expensive. The aviation industry depends on complex IT systems for booking, operations, and customer service. Maintaining these systems in-house can be costly, with expenses ranging from hardware upgrades to cybersecurity.

By outsourcing IT operations to specialised providers, aviation companies can:

• Access the latest technology without heavy capital investment.

• Ensure 24/7 monitoring and support.

• Mitigate risks with advanced cybersecurity measures.

Outsourced IT partners can also implement cloud-based solutions to streamline operations further, helping companies reduce on-site infrastructure costs and improve data accessibility.

Streamline Customer Support Operations

Aviation customer service outsourcing is another easy way to reduce aviation operational costs. High customer service is vital in the aviation industry. Travellers don’t want to call for enquiries and find that the line is always busy, they are kept on hold for minutes, or they can't be attended to in their language. However, managing call centres and customer support teams in-house can be resource-intensive which always leads to poor customer service delivery.

Outsourcing these functions to specialised BPO providers ensures high-quality support while reducing operational expenses.

Outsourced teams can handle

• Ticket bookings and cancellations.

• Baggage claim and lost item support.

• Feedback collection and complaint resolution

• General flight enquiries 

• Providing multilingual customer support. 

By using advanced technologies like AI chatbots and multilingual support, outsourcing partners can enhance customer experience while significantly lowering labour costs for the airlines.

Reduce Procurement and Supply Chain Costs

Aviation companies rely on a robust supply chain to ensure the availability of spare parts, fuel, and in-flight supplies. Managing procurement internally can lead to inefficiencies and higher costs due to limited vendor relationships and negotiating power.

Outsourcing supply chain management can reduce overhead cost to a large extent and provide good negotiated rates from suppliers. Some of the benefits also include:

• Cost-efficient procurement processes.

• Access to a network of vetted suppliers.

• Real-time tracking and inventory management.

When airline operators partner with experienced outsourcing providers, they can optimise their procurement strategies and ensure on-time deliveries without overpaying for resources.

Improve Compliance and Risk Management

Compliance with aviation regulations and safety standards is non-negotiable and always evolving, but managing these processes internally can be costly and complex. Setting up an in-house safety and compliance team doesn’t come cheap and it steals valuable time from the company. 

Outsourcing compliance and risk management tasks to experts helps aviation companies:

• Stay updated on changing regulations.

• Reduce the risk of non-compliance penalties which always come with hefty fines.

• Focus on core operational areas.

Specialised providers ensure thorough audits, documentation, and reporting, helping companies avoid costly mistakes and legal issues.

Cost savings can be reinvested in core areas such as fleet upgrades or route expansion.

Conclusion

In an industry where efficiency and cost management are paramount, outsourcing is a strategic solution for aviation companies looking to thrive in a competitive industry. By partnering with experienced BPO providers, airline companies can achieve significant cost savings while maintaining service excellence.

If your airline is ready to reduce operational costs and focus on what matters most—flying high—consider outsourcing as a transformative business strategy.

Ready to optimise your operations and cut down costs with compromising quality? Discover how Outcess can be your trusted partner by contacting us today to learn more about our tailored solutions for the aviation industry.