Ratio Magazine :: The Inside Track to East Africa’s Economies - Kenya: Press Releases: East African Safari Air Express Signs Outsourcing Deal, Sets up Customer Serv

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Kenya: Press Releases: East African Safari Air Express Signs Outsourcing Deal, Sets up Customer Serv

Tuesday, 21 July 2009

East African Safari Air Express (EASAX) has signed a business process outsourcing (BPO) deal with Opensky East Africa aimed at optimizing the cost structure of the airline. Under the agreement, Opensky East Africa will provide a variety of customer relationship management and contact centre services to help EASAX improve customer value and satisfaction and build lasting relationships with passengers.

EASAX Commercial Director, Mr. George Kivindyo said many international airlines are increasingly outsourcing customer relationship management services especially call centre services with a view to enhancing their cost efficiencies and better utilization of resources. “With elusive top-line growth, Airlines have now realized that they need cost management and efficiency strategies to improve their bottom lines,” said Mr. Kivindyo.

Opensky East Africa Managing Director Mr. Aggrey Lumumba said the firm has set up a Customer Service Centre in Nairobi’s Central Business District, dedicated to EASAX passengers.

Based at IPS Building, Kimathi Street, the customer service centre will provide EASAX individual and corporate clients with a 24 hours contact centre for services such as; flight reservations, ticket sales, customer care & helpdesk services, pre-flight and post-flight support, visa processing, travel insurance, airport transfers, inbound and outbound call centre services and tele-sales.

“The customer service contact centre will allow East African Safari Air Express customers worldwide to reach customer service representatives in EASAX uniform, around-the-clock, anytime, and wherever they are,” said Mr. Lumumba

Opensky East Africa is a leading provider of contact centre and BPO solutions to the airline and travel industry. EASAX is a reputable domestic and regional airline that flies to destinations such as Kisumu, Lokichoggio and Juba with flights to other destinations in the pipeline.

EASAX Commercial Director was quoted as saying that despite the current global economic and political conditions creating vulnerability and uncertainties for airlines, dynamic airlines are showing that they have a business model that works. “The fundamental difference of successful airlines from traditional airlines is the higher percentage of variable costs in their cost structure,” said Mr. Kivindyo

Fixed costs make up 60% to 70% of the traditional network airline’s costs; this is reduced to 50% to 60% at budget airlines. “Airlines are converting as many of their fixed costs into variable costs as possible, while lowering overall operating costs,” said Mr. Kivindyo. This makes them supple and streamlined enough to prosper in the current harsh conditions. Opensky East Africa MD said businesses such as airlines must now change their business approaches to address high fixed costs.

Mr. Lumumba said business functions that make up high cost areas must be matched with a business approach that will lower fixed and overall costs, while providing the flexibility managers need to respond to variable market conditions

“Business Process Outsourcing (BPO) helps airlines optimize their cost structures and realign themselves for high performance” Mr. Lumumba said

This means outsourcing non-core, rules-based, back-office functions and processes under a term contract to a specialist third party. Several leading airlines are already outsourcing a range of non-core services such as finance and administration, information technology and human resources.

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