Boosting ROI with Interline Audit Services for a National Carrier
The building of trust and confidence in a vendor entirely depends on the quality of solutions and services that are delivered to a client. The leading carrier of the Republic of Croatia wanted a trustworthy partner who could offer interline audit services. Coforge, based on its 18-year partnership with the client, was able to convince the client for further collaboration. Our interline audit services along with the fare audit services delivered more value by reducing manual efforts, increasing staff efficiency, and increasing ROI for the client.
About the Client
The airline is the leading carrier of the Republic of Croatia and is a full member of Star Alliance. It has more than 14 codeshare partners and operates in more than 35 European destinations of which six are domestic. The airline has a fleet of 12 aircraft, carrying more than 1.8 million passengers in a year.
The volatile economic environment coupled with rising fuel costs was impacting the profitability of the airline. Until 2012, their complete fare auditing was performed in-house, by the Sales Documents Department of the Revenue Accounting unit. However, with the implementation of interface between MonaLisa and SAP ERP in 2009, a lot of resources were moved to check and correct the details of the sales data, especially details of the exchanged documents.
The sales volume was constantly growing, resulting in a huge backlog of sales documents waiting to be audited. The carrier had to decide between hiring additional staff or partly or completely outsourcing the fare auditing process. After evaluating various scenarios, they decided to outsource a part of their agents’ sales for fare auditing.
Our long-term engagement with the client started more than a decade ago when Coforge was chosen as their fare audit service provider. Driven by excellent experience and a high level of satisfaction with our fare audit services, the client chose Coforge as their strategic partner and added our BPO interline audit services to their list of solutions.
Besides growing their sales volumes, the client wanted an integrated solution and more simplified processes in their own in-house Revenue Accounting solution. Coforge’ interline audit services were evaluated for the engagement. After appraising various solutions from a number of vendors, the client selected our MonaLisa solution because it fulfilled all the requirements in the most optimal manner. Some of the salient features of the solution included:
Integrated BPO fare audit services with the sales check module
Possibility of issuing Agency Debit Memos (ADMs) and Agency Credit Memos (ACMs) in the revenue accounting system and interface with the BSP link for mass loading of files
Automatic and efficient interline audit and invoicing through the Simplified Interline Settlement (SIS) invoicing error check module
Numerous customized solutions including special Electronic Miscellaneous Document (EMD) processing requirements
User-friendly processing of data that increases the effectiveness of the Revenue Accounting department with minimal manual efforts
Easy integration and interface with the SAP financial system
Modular and scalable solution to expand operations
Simple and easy-to-use system with comprehensive Revenue Accounting functionalities
Comprehensive Management Information System (MIS) reporting
Customized General Ledger interface
Delivering More Value
More Improvements: Our interline auditing services significantly reduced the manual work and improved the billing process. We improved the rejection ratio, especially in the wrong application and overbilling of Special Prorate Agreement (SPA) amounts and tax.
More Satisfaction: Coforge’ fare audit services speeded up the recovery process and significantly reduced revenue leakages, without the need for investment in additional resources.
More Efficiency: The efficiency of the staff increased and the airline was able to gradually reduce the time required for the preparation of rejection invoices, resulting in increased ROI.