Flight Route Profitability (FRP) solution | Airlines Case study | KSA
Flight Route Profitability (FRP) solution airlines case study blog will talk about the business situation of a Leading Airline Carrier in the KSA, why they chose to implement Kaar Tech’s FRP solution using SAP, and the value-driven benefits realized.
The client is Saudi Arabia’s National Airline carrier which operates domestic and international scheduled flights. The client is one of the fastest-growing companies in the industry and serves a network of 85 passenger destinations in the Middle East, Africa, Asia, Europe, and North America.
The airline is one of the largest in the Middle East in terms of revenue. The client was looking for a robust solution to integrate all core airline systems and develop business systems using SAP solutions.
Before: Challenges & Opportunities
- Integration & Data Consistency Issue – The existing system had complex heterogeneous IT system in place, which was creating delays and errors in financial processes and reporting
- Difficulties to deal with the tremendous volume of data, and reversal and revisions of old source data
- Improving the airline’s overall services and provide timely and cost-effective services
- To overcome the performance issues with current landscape
- Enabling real-time data availability from different systems
- Flight Route Profitability (FRP) provides meaningful reports, create scenarios and ”what if” analysis in planning along with a detailed analysis of new or potential routes
- FRP also provides a network contribution and profitability at different levels
- The FRP analysis helps to identify all passenger airline operations separately, including but not limited to:
- Scheduled operation
- Hajj and Umrah Operation
- Charter business operations
- Sales of passenger aircraft belly space, i.e. Passenger airline business revenues and costs from cargo carried on passenger flights
- Royal flight services (although there is no profitability on these flights, they do need to be included)
After: Value-Driven Results
- Higher quality ions such as management information which makes strategic and tactical profitability and investments decisions such as:
- Flight schedule for each route
- Optimum aircraft to use on a round trip
- Aircraft layout
- New routes and bases
- Aircraft investment
- Automation of the interfaces, often daily, with a large number of source systems including flight movements, revenue accounting, aircraft maintenance, and SAP FICO
If you are looking to adopt FRP solution using SAP and require a consultation on the licenses or implementation, send me an email at email@example.com.