Non-transport or miscellaneous billing accounts for 8-10% of airline revenues for network carriers. This revenue stream is particularly important for airlines because it is recession-proof and comes with stable margins.
The lack of automation and standardisation across various departments in the billing workflow poses several challenges that affect airline profitability and cash flows. The issues include inadequate control over invoicing, longer service-to-invoice cycles, higher rejections, and revenue leakage from incorrect billing.
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In addition, IATA’s mandate on SIS (Simplified Interline Settlement) compliance is compelling airlines to rethink their miscellaneous billing systems.
FinesseMBS is a SIS-compliant solution that streamlines miscellaneous receivables and payables. Using a single, integrated invoicing and settlement process, FinesseMBS standardises billing and accounting practices across business units. The highly automated solution improves productivity by reducing manual work, increasing invoicing speed, and minimising errors and leakage. A powerful contract management engine helps airlines effectively manage pricing contracts and prevent revenue leakage.
Inward billing is a largely manual process. A number of airline billing divisions capture invoices from other airlines and third-party service providers manually or by loading IDEC files. FinesseMBS provides a powerful and configurable interface that streamlines the inward billing process cost-effectively. FinesseMBS also provides the capability to track correspondence cases and raise invoices once the correspondence is completed on the IS WEB. All invoices are automatically posted to the ERP to avoid duplicate invoice entry.
Outward billing is one of the least automated processes in an airline. FinesseMBS streamlines outward billing and makes it SIS compliant without major changes to existing systems. It centralises invoice data from legacy billing systems in a powerful interface, and transforms the data to generate an SIS-compliant invoice. It eliminates duplicate invoice entry by automatically posting the SIS-compliant invoices to the underlying ERP.