Materials Planning and Provisioning in an Airline

Airlines all over the world are facing financial stringencies. Capital costs for equipment replacement have skyrocketed. The operational costs have been increasing due to fuel costs, landing costs, wages and salaries etc. The growth of traffic and revenue receipts have been lagging behind forecasts. Hence, cash surplus generated by the airlines have dwindled. Some airlines even have run into working capital problems. All these developments seem to indicate that the airlines of the world have to seek new avenues of economising and cost control. One such area seems to be materials planning and provisioning.