Airlines operate numerous flights and incur various operational costs. Direct Operating Costs (DOC) represent 50-60% of an airline’s overall cost structure. Today, it is challenging for an airline to verify and validate each DOC invoice against operational data and complex vendor contracts. Most of the airlines adopt sampling method to verify vendor invoices leading to vendor overpayments. A recent research indicates that airlines typically overpay their vendors to the tune of 0.5 – 2.5% depending upon DOC category.
Accelya’s FinesseCost helps airlines efficiently manage their Direct Operating Costs (DOC). It streamlines the payables process by automatically processing E-invoices from various DOC vendors such as airports, ATC and fuel companies. FinesseCost accurately estimates flight’s operational costs based on actual operational data and vendor contracts. It reconciles these estimated billings with the actual invoices to identify vendor overbilling. Near real time reports help airlines in vendor analysis and facilitate better flight planning, expense budgeting and forecasting.
Airlines have the flexibility to implement individual categories such as Fuel, Airport, Navigation, Catering,Ground handling, PAX handling, PAX Security, Cargo handling – allowing airlines to phase the implementation as per their business needs.