Adhoc flights
By taking average figures from the airlines we had already worked with, we calculated that an airline, whose strategic operating purchases account for between 40% and 70% of its turnover, and which has a net profit after tax of 5%, needs to increase its profit level to 50%. This implies one of the following:
- Increasing its sales by 50%
- Decreasing its salary outlay by 20%
- Reducing its purchases by 5%
But, while major airlines were developing powerful but expensive cost reduction tools and methods, it seemed to us that most small and medium sized airlines had to find an external solution that would offer :
- Affordable costs and flexibility
- Transparency and neutrality
- Competitive prices despite low purchasing volumes
- Inclusion of every operational purchases categories
- Support of consultants experienced in purchasing in the airline industry
- Electronic tools allowing the optimization of their purchasing management
It also seemed to us that existing solutions didn't answer these needs, as they :
- Are often expensive or constraining
- Can be influenced by a strong shareholder, customer or supplier
- Have no effect on purchasing power
- Handle only one purchase category most of the time
- Are often divided between consulting companies specialized in purchasing and digital marketplaces
Purchases covered
- Jet A1 (Fuel)
- Passengers and ramp handling
- Security
- Bus (for crew)
- Crew uniforms
- Catering
- Lubricants
Airports covered
We now cover more than 320 airports all across the world, including :
- Europe : CDG, MAR, AMS, HTR, MAD
- World : CMB, MLE
Aircraft
We provide our services for an aggregated fleet of 124 aircraft, including :
- A 330
- A 320
- B 737
- BAE 146
- EMB 135
- MD 80
- ATR 42
Process
The following is a description of how we handle a joint tender. Other purchase categories are managed more or less the same way, with differences in specifications and suppliers. In the few instances where group buying is not the best solution (specified needs for example), we provide FQ/tenders and reverse auction tools.
- Joint tender set-up: 1 month
- We contact each of our members individually around January in order to study their needs and objectives.
- If necessary, a consultant can help a member to redefine its specifications, cost target prices, or even his purchasing strategy.
- We gather selected volumes and specifications around a unique draft and validates it with each member. Information provided is always kept strictly confidential. A member only has access to the name of other participants and the aggregated volume of the tender. If no agreement can be reached on a few specifications (insurance or liability for example), a separated quotation request completes the draft.
- Sourcing: 2 weeks
- We make a first contact with registered suppliers and analyze possible opportunities within concerned airports (new offers, rules)
- We ensure that suppliers and services fit members' requirements and we check individual certificates
- This first approach allows a better estimation of achievable savings and a definition of the tender organization and objectives with each member.
- Selected suppliers have access to our TENDER. They can directly put their quotation online or send it to us.
- Tender management: 2 weeks
- We handle the negotiations with suppliers in order to achieve defined price objectives.
- Members are informed of the tender's evolution by telephone and e-mails on a day-to-day basis. They are free to enter the discussions or leave them to us.
- Our TENDER process also allows members to easily compare quotations and check their evolution.
- When final quotations have been sent, the tender is ended as usual : members choose the supplier(s) to award and directly sign the contract. We only act as consultants on the award and we arrange a meeting if necessary between customers and suppliers.
- Contract management:
- After contracts are signed, participating members are provided with an exhaustive analysis of the joint tender.
- Our statistical tools allow members to extract statistics and graphics about the tender, such as an aircraft's fuel consumption or the volume awarded to a supplier on any airport or country. This greatly simplifies the member's cost analysis and management throughout the life of the contract.
- Our invoice reconciliation tool helps save much time and money by automatically extracting errors from the comparison of members' technical logs and suppliers' invoices.
Benefits
- Best prices: Our joint tenders allow between 5 and 15% reduction on former prices. Reverse auctions allow between 9% and 17%.
- Purchases covered: According to our present results, we believe our services can cover most operational purchases of an airline. If a particular purchase falls outside of our capability, please contact us.
- Purchasing expertise: You benefit from the expertise of our purchasing consultants/buyers, all with at least 10 years of experience in purchasing management or consultancy, mostly in the airline industry.
- E-purchasing tools: We provide you with tools designed specifically for airlines, which optimize your purchasing process and reduce its global cost.
- Our cost: Our revenue is based on the savings you get.
- Flexibility: You select the needs you want us to take charge of and you have no obligation to participate.
- Neutrality: No airline, supplier or airport has any equity in our capital.
- Transparency : During a joint tender, we constantly provide participants with all the information they might need.
Our members
- Virgin Express (BE)
- SkyEurope (SK)
- Air Europa (ES)
- Air Méditérannée (FR)
- Luxair (LU)
- NouvelAir (TU)
- CityAirline (SE)
- Smartwings (CZ)
Solution for adhoc flights : EASYADHOC
Airsavings now provides EasyAdhoc ®, a top-class online service for purchasing Ground Handling at many airports/stations in Europe.
EasyAdhoc ® means : a large airport network, top ground handling services and competitive prices thanks to large volumes.
EasyAdhoc ® is engineered for airline professionals, by airline professionals. That is why we can guarantee it is efficient, relevant and robust with state-of-the-art security.
Please visit www.easyadhoc.com