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Making the Right Choice: In-House vs. Outsourced OCC Services
Airlines work hard to improve operations and keep flights safe in the aviation industry. One big decision is whether to manage an Operations Control Center (OCC) internally or outsource it. OCC responsibilities include planning flights, getting permits, monitoring flights, sending flight plans to air traffic control, checking weather and NOTAMs, managing slots, arranging fuel and hotels, and more. This article explains the pros and cons of each option, with real examples from AVEM AERO.
In-House OCC: Pros and Cons
Advantages:
Control and customization: Operating an in-house OCC gives airlines the agility to quickly adapt and refine procedures if needed.
Offline communication: An in-house team can enable more direct interaction, potentially allowing for immediate responses to real-time operational changes. However, this advantage is only fully realized if the airline maintains a physical office with staff working on-site. Its effectiveness also depends on factors such as staffing levels, internal processes, and overall team coordination.
Disadvantages:
High costs: Establishing and maintaining an in-house OCC involves significant expenses, including salaries, taxes, training, benefits, office rent, infrastructure investments and other overhead and operational costs.
Staffing challenges: Recruiting and retaining skilled OCC personnel is increasingly challenging. Unexpected absences or resignations can lead to operational disruptions, and the time and expenses required for onboarding new staff can slow down efficiency.
Limited scalability: An in-house OCC may struggle to adapt to fluctuating workloads, particularly during peak travel seasons, potentially affecting service quality and operational performance.
Outsourced OCC: Pros and Cons
Advantages:
Cost efficiency: Outsourcing OCC services offer a more flexible and cost-effective alternative to an in-house model, as clients pay only for the actual number of legs handled, whereas an in-house OCC has fixed costs regardless of operational demand.
Expertise on demand: Specialized service providers offer extensive experience and knowledge, adeptly handling complex operational scenarios and ensuring compliance with industry specifics.
24/7 availability: Outsourced OCC providers typically operate around the clock, ensuring continuous monitoring and support, which is crucial for global airline operations. By covering your out-of-office hours, outsourcing eliminates the need for additional staffing expenses while allowing your in-house team to rest, reducing fatigue and improving overall efficiency.
Scalability: Outsourced services can be easily adjusted to meet changing demands, allowing airlines to scale operations up or down in response to market conditions without the delays associated with internal staffing adjustments.
Disadvantages:
Integration and Onboarding Period: While outsourced OCC teams follow the airline’s policies and standards just like an in-house team, they may require an initial adaptation period to fully align with the airline’s unique workflows, internal culture, and specific operational nuances. This onboarding phase is crucial to ensure seamless collaboration and efficiency.
Requires clear coordination: Effective collaboration with an outsourced OCC depends on clearly defined expectations and efficient communication channels to prevent misunderstandings and ensure seamless operations.
“Today, airlines deal with many challenges, including rising fuel prices and supply chain issues caused by wars, pandemics, and transportation delays. Striking a balance between maintaining the highest safety standards and keeping operational costs under control is essential for survival. Focusing only on compliance and safety, while critical, can make it difficult to stay competitive in an increasingly cost-driven market. By outsourcing OCC services, some of our clients have managed to cut operational staffing costs by up to 60%, allowing them to allocate resources more efficiently without compromising on safety or performance."
Daniil Vasylkov
Commercial Director at AVEM AERO
“We see firsthand that the choice between in-house and outsourced OCC doesn’t have to be all or nothing. For example, we support an airline that manages its own OCC during the day but relies on our team for night shift coverage. This allows them to maintain full control during peak business hours while avoiding the high costs and staffing challenges of running a 24/7 in-house team. By blending internal expertise with outsourced support, airlines can achieve both efficiency and cost savings without compromising operational reliability."
Ihor Reznik
Head of OCC at AVEM AERO
Making the Decision: In-House vs. Outsourced OCC
When deciding between an in-house and outsourced OCC, airlines should consider factors such as company size, resource availability, operational complexity, and strategic objectives.
In-house OCC: Suitable for large, established airlines with predictable workloads, substantial resources, and a desire for direct control over operations.
Outsourced OCC: A strategic solution for regular and charter flights, as well as general and business aviation. It is the preferred choice for after-hours coverage, night shifts, peak-season demand, and addressing staff shortages—allowing airlines to maintain operational efficiency without the overhead costs and administrative complexities of managing an in-house OCC.
Conclusion
We recognize that every airline operates differently. That’s why we deliver bespoke outsourced OCC and flight support solutions—whether you choose a fully in-house model, outsourced support, or a hybrid approach that combines both. Our OCC services adapt to your specific needs, helping you optimize costs, manage operational challenges, and improve overall efficiency.
Explore the best OCC strategy for your airline. Contact us today to find the right balance between control, flexibility, and performance.