Aviation IT provider SITA has launched a purpose-built accounting solution to help airlines keep direct operating costs down.
AeroCost Manager delivers real-time cost management and invoice control for all aircraft expenditure.
It validates every expenditure of an aircraft operation – from expensive jet fuel that represents more than 30% of costs on any flight, to airport ground handling and associated charges, navigation and overflight fees, take-off and landing charges, and costs from crew transfers and accommodation.
The technology has been developed with the Maureva KEOPS system, which centralises and integrates airline cost controls by validating invoices and automatically detecting overcharging.
SITA’s AeroCost Manager can integrate accounting from more than a thousand suppliers due to its built-in IATA simplified invoicing and settlement (SIS) regulatory protocols.
This helps airlines’ finance and network planning teams build accurate budgets and assess route profitability. It also models complex service agreements in real-time operations for automatic updates, calculating provisional costs based on current operational data. The system automatically detects overcharging and flags discrepancies, generating claims and credit notes.
“Keeping on top of costs in the aviation industry isn’t easy, and yet it’s essential for managing the financial success of operations and future route planning,” said Martin Smillie, senior vice president, communications and data exchange at SITA. “But most direct operating costs are still handled manually and aren’t centralised. That’s not only ineffective for budget control but also opens up an airline to inefficiencies and worse, to third-party fraud.
“SITA AeroCost Manager is a purpose-built and game-changing accounting system for airlines to control their operating costs effectively. It is an accounting solution that maximises and adds profitability to an airline’s financial bottom line.”
He added: “Without centralised, automated control of invoice management, it becomes a cost centre and not a control point, with weak invoice checks.
“For airlines with a fleet of 50 aircraft, accounting teams will deal with 25-30,000 invoices every year. Manual processing generates simple errors, while fraudulent activity can also add unwarranted cost.
“SITA AeroCost Manager resolves these issues with a centralised, intelligent invoice management solution that reduces costs through automation, removing innocent human error and intentional third-party fraud.”
Jean-Marc Perreaux, sales director for Maureva, said: “SITA AeroCost Manager integrates our KEOPS solution to automate and enhance airline decision-making and financial stability.
“It centralises data and continuously monitors costs. 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.”
