Airline MANAGEMENT FRAMEWORK Optimizing Operations Through Real-Time Direct Operating Costs Management
The airline industry is a complex place, with multiple layers and hundreds of stakeholders including ancillary vendors, airport authorities, technology partners, GDS and many more. Effective communication and timely sharing of information between these stakeholders impacts airline margins, efficiencies and profitability. Some areas where airlines constantly feel challenged to deliver: Increasing customer expectations It has become critical for airlines to consistently manage the customer expectations. Customer on-demand expectations means providing the right service at the right time under the right price point. Reduction in operating cost To increase profitability an airline needs to know the insights of its operations. Analyzing operations effectiveness, profitability of flight routes, capacity and inventory information and planning are some of the key questions being asked by airline executives. Fuel Prices The fluctuating global economy and fuel prices impact the airline profitability substantially. Higher fuel cost results in financial losses and can be optimized by knowing the correct route profitability.
Managing Operations The operating environment for airlines is highly complex due to the large number of flights, variation in aircraft types, multiple countries and earnings in various currencies. In addition to the above, it becomes difficult to calculate the actual operating cost for each flight in real-time due to: Standard ERP systems which do not provide accrual of expenses on daily basis Complex IATA based service parameters to be implemented for material management Detailed cost calculations cannot be tracked according to IATA rules It is essential for an airline to have access to accurate real-time direct operating cost data to analyze profitable & non-profitable routes and activities.
Airline Cost Management Framework Airline Cost Management Framework is an integrated solution that automates end-to-end business processes to ensure smooth operations. It provides real-time data of the direct costs involved in flight operations and helps determine route profitability. Features IGT s framework combines data from flight operations system (FOPS), revenue accounting, departure control and BI/DW system to provide real-time, unified view of the route profitability. It also includes costs like crew, hotel, transport, web voucher etc. to provide 360 degree view of the real-time direct operating costs. MASTER DATA FOPS DATA CONTRACTUAL DATA Real-Time Landing Charges Lighting Charges VSAT Charges NAFISAT Charges Terminal Navigation Charges Communication Charges Parking Charges Overflying Fee Cost Management Framework Ground Handling Charges Fuel Uplift Charges Real-Time Accurate cost reporting Route/network result calculation Invoice verification Fast ROI calculation Budget forecasting
Integration Modules Fuel The framework integrates fuel charges and helps accurately calculate and predict uplift and fuel consumption volumes along with related costs Airport & Ground Handling Charges It maintains contractual rates for airport services, handling charges and automates invoicing and accrual management Navigation Charges It captures data from navigational planning systems and automatically applies the latest navigation rates to calculate overflight cost Integrated Contract Management Intelligently unifies and manages contractual data for smooth handling of budgetary estimates, invoice verification and forecasting Automated Invoice Control & Accruals Generation Electronically received invoices can be automatically verified against stored contractual rates Revenue Management Syatem The framework integrates with revenue systems to help determine route profitability on real-time basis Reports Various reports such as simulations, realistic forecasts and dynamic budgets based on real-time numbers can be easily generated Catering Charges Digitized in-flight inventory of F&B for insight into route cost, final consumption, passenger trends and data
Airline Cost Management Framework: a comprehensive route profitability solution Get Faster and Accurate Profitability Reporting Estimate & predict the profitability of the airline operations down to tail number Any aspect of an operated flight can be reviewed for analysis, planning & decision-making Capture Hidden Costs All charges get analysed including different noise charges, lighting charges, terminal navigation charges and VSAT charges Enable Efficient Budget Planning Forecast the simulation of individual flight events Create the most efficient and profitable route plan Get Faster ROI Completely eradicate overbilling from suppliers Create seamless creation of accurate accruals Both cloud and on-premise deployment option available
Make Operations Management Simple 15% Reduction in operating costs due to real time monitoring 99% Accuracy of Estimated Costs 40+ Prebuilt customizable Dashboards and What-If Analysis Reports Single View of Route Profitability Real-time Postings enables data update for Liquidity Forecast, Cash Management & Daily Route Profitability reports 450+ Reusable Business Scenarios 30+ Direct and Indirect Cost Components 5% increase in Operational Efficiency. Drill down reporting from different aggregated levels to detailed figures Achieve real-time data accuracy and profitability
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