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Airlines make money by flying passengers!

  • Writer: Admin
    Admin
  • May 24, 2017
  • 3 min read

Air tickets sold and and air fares received from present and future passengers is the means of creating revenue for airlines and aircraft operators. Funds invested into newer aircraft that will attract more passengers and reduce the cost to fly these passengers makes fiscal sense. Airlines and aircraft operators strictly manage their costs and overheads, but ultimately airlines generate their revenues and profits by flying passengers from point A to point B.

So why do airlines focus so much attention on the maintenance of their aircraft? I'm not for one moment suggesting that airlines and aircraft operators should reduce their maintenance and safety checks to be more profitable, but when airlines generate their revenue and profits from flying, Airlines should focus on doing a better job at flying passengers. Their funds and capital should be invested into making the passengers experience greater to guarantee more return passengers. We all remember how the airlines led the loyalty programs internationally with the accrual of air miles! This certainly changed the customers buying habits and made particular airlines more attractive to particular people, but the creation of these programs was many years ago.

You would think that as a global leader in industries and consumer behavior that airlines would be a step ahead of other industries, but this seems to not be true today. I believe that it is because the airlines have taken their focus off their actual mission and purpose, flying passengers!

Commercial Airlines in North America at present have $30 Billion invested into excess inventory of parts!

If the airlines were to sell all their inventory, they could buy 365 new Boeing 737's with an average list price of $82 million. Imagine 365 new state of the art aircraft flying us passengers throughout North America... using money that the airlines have tied up in inventory of parts for aircraft, and some of that inventory is for aircraft that they no longer even fly!

By the airlines in North America, and the rest of the world, selling off their inventory and holding options on inventory that they needed, through the Aviation Option Market , they would be able to put $30 Billion back into their pockets and operate their airlines more fiscally lean! They might not use the money to buy new aircraft, but they could certainly find many other opportunities to better invest their capital!

The Aviation Option Market is a platform and trading tool where the airlines will be able to purchase option contracts on parts, securing their rights to a specific part, allowing them to take delivery of the part as and when needed, releasing capital for the airline to better utilize in their operations and core mission.

With the event and introduction to the aviation industry of the "Low Cost Carrier" model, the more establish "Legacy" airlines have been struggling to offer the benefits of flying with them while being competitively priced. Competition pushes us to think and look for new opportunities, The Aviation Option Market is just the solution for Airlines and aircraft operators to operate more cost effectively, and be more profitable!

Contact FlyingParts, the holders and developers of the only Aviation Option Market serving airlines, operators and all aviation companies with a better solution for keeping the aircraft flying and getting passengers from point A to B!

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