Airline

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, airline technology
solutions, GDS integration 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
Monitoring Framework
Airline Cost Monitoring 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
IGTs framework combines data from flight operations system (FOPS), revenue accounting,
departure control and Business Intelligence and Analytics 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.

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Direct Operating Costs

Accurate cost reporting
Invoice verification

Route/network result calculation

Fast ROI calculation

Budget forecasting

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Integration Modules
Fuel

Automated Invoice Control &

The framework integrates fuel

Accruals Generation

charges and helps accurately

Electronically received invoices

calculate and predict uplift and

can be automatically verified

fuel consumption volumes along

against stored contractual rates

with related costs

Revenue Management Syatem
Airport & Ground Handling

The framework integrates

Charges

with revenue systems to help

It maintains contractual rates for

determine route profitability on

airport services, handling charges

real-time basis

and automates invoicing and

accrual management

Reports
Various reports such as

Navigation Charges

simulations, realistic forecasts

It captures data from navigational

and dynamic budgets based on

planning systems and

real-time numbers can be easily

automatically applies the latest

generated

navigation rates to calculate overflight cost

Catering Charges
Digitized in-flight inventory of

Integrated Contract Management

F&B for insight into route cost,

Intelligently unifies and

final consumption, passenger

manages contractual data for

trends and data

smooth handling of budgetary

estimates, invoice verification and
forecasting

Airline
Cost Monitoring
Framework:
a comprehensive route profitability solution
Automatic Cost Calculation
Airline Cost Monitoring Framework calculates the value
of cost components according to IATA regulations
which is not possible in standard ERP where calculation/
postings are done manually.

Real-Time Postings
It provides real-time update of accruals which get
cleared when the invoices are received. This improves the
accuracy of liquidity forecast, cash flow reports & route
profitability reports.

Exception Error Handling

Data errors caused due to any system or data issues
are stored and updated in the framework after error
rectification.

Checks and Validations

Checks and validations have been inserted in the
framework to ensure correct cost calculations within the
parameters defined in IATA and other business rules.

Make Operations
Management Simple
Get Faster and Accurate

Capture Hidden Costs

Profitability Reporting

All charges get analysed including

different noise charges, lighting charges,
terminal navigation charges and VSAT
charges

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

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

Achieve
real-time data
accuracy and
profitability

Visit us at

InterGlobe Technologies
Echelon Building, Plot No-49, Sector-32,
Gurgaon-122001 Haryana, INDIA
mktg@igt.in | www.igt.in