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Improving Profitability with Transformed Flight Operations

Synopsis

Efficient revenue accounting processes help airlines in improving cash flow and profitability, and provide timely information for strategic decision-making. In order to ensure prudent operational and financial management controls, a low-cost, high-quality Japanese carrier partnered with us to upgrade to an industry-compliant system, matching their performance . Effective implementation of the industry-compliant, integrated solution enabled the client to stay ahead of the IATA timelines and achieve a better revenue flow.

About the Client

A Japanese low-cost, high-quality carrier, the client serves business and leisure travelers. The airline began operations in 2006 with a fleet comprising of the Airbus A320 aircraft.

Business Challenge

A volatile economic environment coupled with rising fuel costs was impacting the profitability of the Japanese airline. To grow passenger load across scheduled and code share segments, the client needed support in enhancing their internal accounting IT system. The objective was greater automation for prorate and interlining of their planned international operations, reduced dependency on manual analytics, and fulfillment of the IATA’s e-service requirements.

The existing system did not provide control over accounting, managed domestic and international flights separately, settled with corporate customers only when they flew with the airline, and provided billing statements only in the Japanese language. In addition, the client’s branch accounting for sales outside of  Japan did not reconcile with the bank statements.

The client needed a strategic partner with transformational capabilities and proven expertise in revenue accounting. We were able to deliver this owing to our expertise in providing proactive and reactive services to airlines across the globe.

Our Solution

We deployed our integrated solution for revenue accounting for the program. This included license for our MonaLisa revenue accounting product and revenue accounting bureau services.

Our deployment team ensured smooth transition from the traditional accounting system to the new system with feature-rich functions—Sales Check, Difference Run, Balancing—that are scalable with changing business needs. Key interventions and transition workshops were held to build confidence in the new system. The transition was completed seamlessly and in compliance with stringent IATA e-services guidelines.

Delivering More Value

With our integrated solution, the client accomplished an ambitious transition, with significant cost reductions, and more accurate and timely revenue accounting, within a year. The transition delivered:

More Revenue:

Accurate billing and verification resulted in better revenue flows for the client.

More Satisfaction:

Our solution enabled the client to identify potential areas for generating maximum revenue. The automated system ensured that the personnel were not involved in manually entering data. More User-friendly: The rich and customized user-friendly interface gave end-users an enhanced experience.

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