Naperville Business Lawyer Discusses Airline Saving Big Through Small Changes

saving, Naperville business law attorneyWith 30-plus years of experience in business law, I recognize that small changes in a business can sometimes make huge differences. For example, a relatively minor update to your company’s disciplinary guidelines and procedures could dramatically improve employee morale. Similarly, more efficient hardware and work routines could have a substantial impact on the overall productivity of your business.

Pennies Add up to Hundreds of Thousands of Dollars

Of course, it is also possible for small changes to have a large effect on a company’s bottom line, and United Airlines is a perfect example of this. The Chicago-based carrier has recently enacted a cost-saving measure that is brilliant in its simplicity. The airline, like many others, prints a magazine that is made available to each person who flies with the airline.

Each magazine in the cabin adds just a few ounces of weight to the plane, but every ounce requires a correspondingly tiny amount of fuel to be used during each trip. Over the course of 4,500 flights a day, the weight of these magazines adds up. In order to control costs, the airline has switched to lighter paper, meaning that each magazine now weighs one ounce less than it did previously. On average, this makes the plane 11 pounds lighter. While 11 pounds may not sound like very much, the savings quickly add up. The airline reports that this simple solution is saving 170,000 gallons of fuel per year—a cost savings of about $290,000 annually.

Small Costs Can Add Up Quickly

This is not the first time United has taken steps to cut their fuel costs. Last year, the airline stopped on-board sales of duty-free items. This resulted in a 1.4 million gallon fuel reduction annually and a cost savings of $2.3 million. This cost-saving strategy is similar to that of American Airlines almost thirty years ago. The airline made headlines when they estimated that if they eliminated one olive from each passenger’s salad plate, it would reduce costs by $40,000. The arbitrary nature of the item in question made the story gather quite a bit of attention. A seemingly innocuous garnish had a surprising impact on travel costs.

Focus on Cost Containment

Though there is a lot of discussion about raising funds for business operations, in some businesses, there is inadequate research about cost containment. Waste and hidden costs are everywhere. By scrutinizing how a business is managing costs, a business owner can find unexpected ways to save money. Financial experts encourage business owners not to fall into the common trap of becoming lax on cost containment strategies as they become more successful. A business owner should continue to carefully examine expenses for necessity even when business is booming.

Contact a Naperville Business Lawyer

If you have questions about starting a business, business litigation, tax planning, or for any other legal needs, contact a Naperville business law attorney. Our legal team will work hard to help protect and grow your business. Call 630-756-1160 for a confidential consultation at The Gierach Law Firm today.

 

Sources:

Forbes

Los Angeles Times