Trying to reduce the fixed and variable cost structure represents a formidable challenge these days. While new technology aircraft can reduce costs with aircraft utilization and efficency the more complicated systems they bring with them, and higher MX costs (if not under warranty) make offset those reductions. Many charter operators are also turning to the use of fuel contracts to avoid paying higher spot prices, especially with the current fuel volitility.

As for eliminating the “dead head” legs. Many charter and fractional operators have, with varying degrees of success, used “preferred positioning programs” to make sure that each leg flown creates revenue. For small operators, this may not be cost efficent, but for multiple airplane operators, through the use of software scheduling programs. The “dead head” cost can be greatly reduced, though it still accounts for a significant overhead cost.

By far, one of the easiest way to save on the advertising costs, is the use of social media. Many charter operators have already turned to Twitter to highlight empty leg and route discounts and overall exposure for their business. Since Twitter is currently free, the return on even one sold leg is 100 percent. Other markeing ideas can generate free publicity such as being part of community events and organizations or being an active part AvBusiness organizations. Such relationships MAY result in national exposure which is invaluable.