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Boosting ROI with Interline Audit Services for a National Carrier

Boosting ROI with Interline Audit Services for a National Carrier

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Boosting ROI with Interline Audit Services for a National Carrier

Synopsis

Building of trust and confidence in a vendor entirely depends on the quality of solutions and services that are delivered to a client. The client, a national carrier of the Republic of Croatia, wanted a trustworthy partner who could offer interline audit services. NIIT Technologies, based on its 18-year partnership with the client, was able to convince the client for further collaboration. Our interline audit services along with the fare audit services delivered more value by reducing manual efforts, increasing staff efficiency, and increasing ROI for the client.

About the Client

Croatia Airlines is the national carrier of the republic of Croatia and is a full member of Star Alliance. It has more than 14 code share partners and operates in more than 35 European destinations of which six are domestic. The airline has a fleet of 12 aircraft, carrying more than 1.8 million passengers in a year.

Business Challenge

The volatile economic environment coupled with rising fuel costs was impacting the profitability of theairline. Until 2012, their complete fare auditing was performed in-house, by the Sales Documents Department of the Revenue Accounting unit. However, with the implementation of interface between MonaLisa and SAP ERP in 2009, a lot of resources were moved to check and correct the details of the sales data, especially details of the exchanged documents.

The sales volume was constantly growing, resulting in a huge backlog of sales documents waiting to be audited. The carrier had to decide between hiring additional staff or partly or completely outsourcing the fare auditing process. After evaluating various scenarios, they decided to outsource a part of their agents’ sales for fare auditing.

Our long-term engagement with the client started more than a decade ago when NIIT Technologies was chosen as their fare audit service provider. Driven by excellent experience and high level of satisfaction with our fare audit services, the client chose NIIT Technologies as their strategic partner and added our BPO interline audit services to their list of solutions.

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Business Solution

Besides growing their sales volumes, the client wanted an integrated solution and more simplified processes in their own in-house Revenue Accounting solution. NIIT Technologies’ interline audit services were evaluated for the engagement. After appraising various solutions from a number of vendors, the client selected our MonaLisa solution because it fulfilled all the requirements in the most optimal manner. Some of the salient features of the solution included:

  • Integrated BPO fare audit services with the sales check module
  • Possibility of issuing Agency Debit Memos (ADMs) and Agency Credit Memos (ACMs) in the revenue accounting system and interface with the BSP link for mass loading of files
  • Automatic and efficient interline audit and invoicing through the Simplified Interline Settlement (SIS) invoicing error check module
  • Numerous customized solutions including special Electronic Miscellaneous Document (EMD) processing requirements
  • User-friendly processing of data that increases effectiveness of the Revenue Accounting department with minimal manual efforts
  • Easy integration and interface with the SAP financial system
  • Modular and scalable solution to expand operations
  • Simple and easy-to-use system with comprehensive Revenue Accounting functionalities
  • Comprehensive Management Information System (MIS) reporting
  • Customized General Ledger interface

Delivering More Value

  • More Improvements: Our interline auditing services significantly reduced the manual work and improved the billing process. We improved the rejection ratio, especially in the wrong application and overbilling of Special Prorate Agreement (SPA) amounts and tax.
  • More Satisfaction: NIIT Technologies’ fare audit services speeded up the recovery process and significantly reduced revenue leakages, without the need for and investment in additional resources.
  • More Efficiency: The efficiency of the staff increased and the airline was able to gradually reduce the time required for the preparation of rejection invoices, resulting in increased ROI.

Customer Testimonial

With NIIT Technologies' Fare Audit Services we were able to cut the auditing backlog, increase the productivity and efficiency and improve our ADM collection value without the increase of the personnel. NIIT Technologies' Interline Auditing Service reduced manual work required to move the data between the systems and have the rejections readily available in MonaLisa for uploading to SIS. Our efficiency has increased and we are able to gradually reduce the time to rejections. NIIT Technologies has improved our rejection ratio, especially in respect to taxes

Darko Kehler Revenue Accounting Manager, Croatia Airlines

The NIIT Technologies Advantage

NIIT Technologies leveraged its vast experience in the airlines industry and deployed a large number of industry experts in this engagement. As a long-term, reliable, stable, and cooperative partner of the client, we provided consulting services and helped the airline build strategies to stay ahead of competition

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