The cost of complexity

The traditional full service airlines are facing many challenges and an uncertain future. All that is certain is that unless radical changes are made to the way we transact business, we will be unable to compete with the low–cost model. IATA airlines are governed by rules and regulations designed to provide consistency and a minimum level of customer service. Carriers have in turn then added further complexity to meet the requirements of their own internal processes and organisations. Low–cost carriers have mainly started from scratch and have been driven by cost considerations before everything else, giving them a great advantage in today's world. Their customer proposition is simple, enabling them to do business almost entirely online. While their business model does not fit that of British Airways, it offers pointers on the way forward which need to be embraced. This paper looks at some of today's processes and questions their value.