Giovanni Bisignani Costs Quotations

Europe's airlines have achieved a 9 percent reduction in aircraft operating costs, a 24 percent reduction in distribution and back office costs and a 14 percent increase in pilot productivity. Airports, on the other hand, gave the airlines a 13 percent increase in per-passenger costs, with a total bill for airlines and their users of $14.5 billion.

Each dollar added to the price of a barrel of oil adds $1 billion in costs to the industry.

Oil remains the wild card for industry profitability. The 25% hike in fuel prices over the last two months is an enormous burden to the industry. However, the S$ 1.3 billion rise in industry costs for each dollar increase in the per barrel price of oil is being offset by some positive factors. Industry hedging levels are 50%. Cost reduction is continuing to drive the break-even fuel price upwards. And the US domestic yield rose 12.4% in February.

Oil is once again robbing the industry of a return to profitability, ... Each dollar added to the price of a barrel adds $US1 billion in costs to the industry.

Paper costs money...you do not need to be a rocket scientist to understand that up to $3 billion in savings are possible.