Regulatory compliance with fare audit services

Synopsis

The client was looking to improve, update and enhance their fare auditing processes and after much thought decided to partner with Coforge. We efficiently implemented our MonaLisa solution to assist the client and continued to work with them to improve other audit services.

About the Client

The client was the national carrier of the Republic of Croatia and is a full member of the Star Alliance. It had more than fourteen codeshare partners and operated in more than 35 European destinations of which only six were domestic. The airline had a fleet of 12 aircraft and carried more than 1.8 million passengers in a year.

Business Challenge

The volatile economic environment coupled with rising fuel costs had an impact on the airline’s profitability. Until 2012, the client’s fare auditing was conducted in-house, by the Sales Documents Department of the Revenue Accounting Unit. However, with the implementation of the interface between MonaLisa and SAP ERP in 2009, many resources were moved to check and correct details of sales data, especially details of documents exchanged. ​Sales volume was constantly growing, resulting in a huge backlog of sales documents to be audited. The client had to decide between hiring additional staff and outsourcing their fare auditing process partially or completely. After evaluating various scenarios, the client decided to outsource part of their agents’ sales for fare auditing. ​

The long-term engagement between the client and Corforge began more than a decade ago when Coforge was chosen as the client’s fare audit service provider. Driven by the excellent experience and high level of satisfaction with our fare audit services, the client chose to continue working with Coforge as their strategic partner and added our BPO interline audit services to their list of solutions.

Our Solution

In addition to growing their sales volumes, the client wanted an integrated solution and simplified processes as part of their in-house Revenue Accounting solution. Our 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 optimally fulfilled all their requirements. Salient features of our solution included: ​ 

  • Integrated BPO fare audit services with a sales check module​ 
  • The possibility of issuing Agency Debit Memos (ADMs) and Agency Credit Memos (ACMs) through the revenue accounting system and interface with the BSP link for mass loading of files​ 
  • An 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 data processing that increases the effectiveness of the Revenue Accounting department with minimal manual efforts
  • Easy integration and interface with the SAP financial system​
  • A modular and scalable solution to expand operations​ 
  • A simple and easy-to-use system with comprehensive revenue accounting functionalities​ 
  • Comprehensive Management Information System (MIS) reporting​
  • A customized general ledger interface​ 

Delivering more value:

  • More improvements: Our interline auditing services significantly reduced manual work and improved the billing process. We improved the rejection ratio, especially in wrong application and overbilling of the Special Prorate Agreement (SPA) amounts and tax. ​
  • Higher satisfaction: Our fare audit services speeded up the recovery process and significantly reduced revenue leakage, without the need for and investment in additional resources.
  • Better efficiency: The efficiency of staff increased and the airline was able to gradually reduce the time required to prepare rejection invoices, resulting in increased ROI.​ 
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