50 SKY SHADES - World aviation news

Airlines Can Boost Their Top and Bottom Line by Streamlining Financial Processes

Download: Printable PDF Date: 15 Sep 2015 22:45 categories:
Airlines Can Boost Their Top and Bottom Line by Streamlining Financial Processes - Finance publisher
Tatjana Obrazcova
Source: Aviationpros

The airline industry faces a number of challenges when it comes to financial management, including revenue leakage, complex income streams, and tax reporting and compliance across multiple markets. Coupled with an often-traditional approach to financial processes, it's clear that financial management remains an area for innovation.

Against this backdrop, a new report published today, written by Frost & Sullivan and commissioned by Amadeus, highlights a 'window of opportunity' for airlines to boost their top- and bottom-line by integrating financial processes, increasing automation and exploiting predictive analytics.

Key findings from the report include:

Airline CFOs today face a number of challenges, such as revenue leakage, which can cost airlines as much as 3% of revenue

Greater integration of financial processes could boost revenues by up to $1.5 million per annum for a medium-sized airline

Adapting to new payment methods such as Bitcoin will be a competitive imperative. More fundamentally, Blockchain technology could have a revolutionary impact on accounting by offering a single, secure, transparent global ledger

Interline settlement improvements could save the industry $500m annually, if airlines embrace tools and standards

Better financial management will ultimately prove an enabler for the development of the airline product, in turn improving the customer experience and delivering increased customer loyalty

"In certain circumstances, airlines today may not even be able to know the exact revenue numbers for a specific flight," said Alexander Michael, Director, Digital Transformation at Frost & Sullivan, the author of the report. "It is imperative that airlines now focus on integrating and streamlining financial processes, not only to eliminate revenue leakage and other inefficiencies, but also so they can benefit from predictive analysis, becoming truly customer-centric and improving the top and bottom lines."

"This report reveals a significant opportunity for airlines," said Patricia Simillon, Head of Strategic Marketing in Airline IT at Amadeus. "Streamlining financial processes will enable airlines to achieve optimization and efficiency. This is a strategic priority for us at Amadeus and we are committed to working with our airline partners to transform the industry's approach to financial management."

Alexander Michael, Director, Digital Transformation at Frost & Sullivan and the report's author, will be presenting the report's findings on Thursday, September 17, 2015 at the IATA World Financial Symposium in Barcelona, Spain.

Loading comments for Airlines Can Boost Their Top and Bottom Line by Streamlining Financial Processes...


Munich Airport recognized for successful efforts to reduce CO2 emissions

The international climate protection organization CDP (Carbon Disclosure Project) has again recognized Munich Airport (FMG) for its highly effective climate protection efforts. For the third consecuti...

Air Canada becomes Official Airline of Cirque du Soleil

Air Canada and Cirque du Soleil announced an exclusive partnership designating Air Canada as Official Airline for Big Top and Arena shows for Canada,...

Celebrating 10 Years of Aviation Inspiration

The topic of crisis of the pilot shortage and aviation mechanic shortages is very mutch discussed. The logical question is - what should be done, what action will give immediate results, what act...

Welcome a fully-refurbished SWISS Airbus A340 fleet

SWISS concluded the cabin refurbishment programme for its Airbus A340 aircraft fleet in mid-January. All five fleet members have now been provided with a totally new cabin and a new inflight entertain...