It’s time to automate and simplify accounting cost-controls

Controlling costs is key in any industry. But keeping on top of costs in the aviation industry is far from easy. And yet it’s essential for managing the financial success of everything, from everyday airline operations to future route planning.

For airlines with a fleet of 50 aircraft, accounting teams will deal with between 25,000-30,000 invoices each and every year. But most of those direct operating costs are still handled manually and aren’t centralized. That sound efficient or effective? It’s not, is it!

It means that the direct price of operating aircraft, with multiple partners, is open to error. And that’s more than half of all airline expenditure!

In reality, many accounting systems are hamstrung by inefficient components that are still managed manually – be this inputting of data, processing of paperwork and more. But those manual processes are open to simple errors, and worse still, intentional third-party fraud. That’s not only ineffective and inefficient for budget control but can also add unwarranted and unwelcome cost.

A purpose-built Direct Operating Cost solution for airline accounting

To address this issue, SITA’s AeroCost Manager is a new purpose-built Direct Operating Cost (DOC) accounting solution that delivers real-time cost management and invoice control for every dollar of aircraft expenditure. Developed with the market-leading Maureva KEOPS system, this system centralizes and integrates an airline’s cost controls by validating invoices, while also automatically detecting any overcharging.

It's been purpose-built for aviation and represents a game-changing accounting system for airlines to effectively keep control of their operating costs. It’s an accounting solution that maximizes and actually adds profitability to an airline’s financial bottom line – because it removes errors.

Automated and enhanced decision-making

SITA AeroCost Manager automates and enhances airline decision-making and financial stability. It centralizes data and continuously monitors costs. So, if an unexpected or inflated invoice enters the system, you’re alerted to it.

Without compromising on functionality and compliance, this system provides accurate calculations for everything from network and route planning to flight operations, post-flight costs and overall budgeting.

Validating every element of operational expenditure

SITA AeroCost Manager validates every expenditure of an aircraft operation – from expensive jet fuel that represents 30%-plus of any flight alone, to your airport ground handling and associated charges, navigation and overflight fees, take-off and landing charges, and costs from crew transfers and accommodation. They’re all incorporated.

With built-in IATA SIS (simplified invoicing and settlement) regulatory protocols, SITA AeroCost Manager can integrate accounting from more than 1000 suppliers to help an airline’s finance and network planning teams to build accurate budgets and assess the profitability of routes on an on-going basis.

The solution can also model complex service agreements in real-time operations for automatic updates, calculating your provisional costs based on the latest available operational data. And the system automatically detects overcharging and flags discrepancies, generating claims and credit notes.

From cost-center to an airline cost control point

Without centralized and automated control of an airline’s invoice management, accounting can become a cost center rather than a cost control point – with weak invoice checks that struggle to meet time constraints, when credit control is paramount.

SITA AeroCost Manager resolves these issues with a centralized, intelligent invoice management solution that reduces costs through automation, removes innocent human error, and protects your accounting from unscrupulous and intentional third-party fraud.

For more details about how SITA AeroCost Manager can keep a check on your operational costs, please contact your Account Manager.