The most successful airline company in the world, Ryanair, relies on cost management for its business model. Before the financial crisis, Ryanair had a high gross profit margin of ca. 20%, today this margin decreased to around 15%. Traditional airliners have a gross profit margin around 5%.

What are the intelligent measures which Ryanair applies to have a low cost structure, which has no negative impact on the quality of its service?

• The aircraft fleet of Ryanair does 1400 flights a day. On average, each aircraft flies 5 times a day. Because the cabine crew cleans the airplanes, they can quickly depart again: on average a Ryanair plane is 25 minutes on the ground before it departs again. Traditional airline companies in Europe fly 3 to 4 flights each day.
• The airplanes are new, which decreases the fuel consumption, as well as technical problems. After a few years the aircrafts still have a high resale value.
• The 275 aircrafts are the same type (Boeing 737-800), which decreases the support costs and technical education of the personnel.
• Ryanair offers only point-to-point flights. By avoiding stops in between, the bagage handling cost decreases.

Besides these intelligent cost management measures, Ryanair also applies a lot of cost reducing measures which do impact the service. These measures are interesting if your company chooses explicitly for a low budget brand, and the customers are aware of this.

• Decreasing the surface each passenger uses in the airplane (increasing the number of passengers per airplane)
• Ryanair mainly picks small and local airports, because they demand low landing and departure faires. Due to this choice, passengers are often obliged to search for extra transport.
• No ’free’ food or drinks on flights.
• One piece of luggage is free. There is a fee for additional luggage.
• Ryanair has no frequent flyer program. The management of this program would only means extra costs for Ryainair.
• Employees of Ryanair are prohibited charging their mobile phones during work hours. By doing this, the company saves a few eurocents each time.
• Ryanair sells the interior and exterior of their airplanes for publicity.
• Customers have to print their own boarding pass. If they forget to do so, Ryanair charges an additional fee.
• There is no business class, all seats are equal and you don’t have a place assigned to your ticket.
• Ryainair sells publicity space on the inside and outside of its aircrafts.

By doing this, Ryanair can sell its tickets on average for 39 €!

Categories : Case studies | Tags : Travel | 0 commentaire associé

In October 2011 no less than 1123 companies defaulted in Belgium. Recent numbers of Graydon, which were published today, indicate that Belgium will pass the all time record of 10000 defaults this year.

The increase is mainly felt in Brussels (+12%) and the Walloon Region (+10,5%). In Flanders, the amount of defaulting companies dropped by 1,54%.

Because more and more companies and individuals spend less, the only good solution is a sustainable and intelligent savings program.

The following image shows three scenario’s: Scenario 1: Status Quo Scenario 2: The company increases its revenue by 10% Scenario 3: The company saves 10%.

At the bottom line, there is 60% more profit in Scenario 3 (savings) vis-à-vis Scenario 2, in which the increase of revenue only led to an increase of profits by 30%.

Protect your company against the upcoming defaults of suppliers and customers. Get advice from our savings experts, which work on a "no cure, no pay" basis!

Categories : Case studies | 0 commentaire associé

Everyone now recognizes the benefits that can be a LED lighting in terms of comfort, durability and savings. But many companies are afraid this would be an expensive investment. However delaying this investment is absolutely not the right choice.

To show you why, here is a project at Generali with Philips: With branches in 42 countries and more than 58,000 employees in its service, the Generali Group is the third largest insurance company in Europe. For the two sites of GENERALI Group in Brussels, the office in the Tower on the avenue Louise and for the office on the Boulevard du Souverain, facilities department has been looking for an efficient general lighting system capable of replacing the existing lighting. Was concerned the general lighting of Avenue Louise and general lighting in all hallways, elevator exits and entrances of the office on the Boulevard du Souverain. Generali Group had already recorded a significant gain in energy with the replacement of lamps by 35W halogen lamp by 20 W MASTERLine from Philips.

Generali decided to move to LED lighting because the long life was particularly obvious (MASTER LED: 45,000 hours of operation MASTERLine 20 W halogen lamp: 5000 hours of operation; standard halogen lamp: 3000 hours of operation). In case of operating 18 hours a day, the Generali Group has amortized the investment in 1 year! In addition to significant energy savings, this lamp also allows energy savings in decreasing the heat of the offices. The difference is even more significant when compared with the conventional lamp of 35 W. Didier Gason, Property Manager "General wants sustainable solutions, less energy, combined with high comfort. The MASTER LED meets these requirements. The warm light does not dazzle and both staff and visitors feel comfortable in its light. "

Today, LEDs have evolved considerably in color, shape, power consumption, durabilityand price. Always head towards quality brands as Megaman, Osram, Philips ...

Do not wait, calculate your savings.

Categories : Case studies | Tags : Energy | 0 commentaire associé