Route Profitability solution for African Airline

amit3076 Case Studies

IGT enabled integration of all airline core systems to manage direct operating costs via successful implementation of SAP based system for a leading African Airline.

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Business Need

  • In line with the airline’s vision 2025, the airline aims to be “the most competitive and leading aviation group by providing a safe, market-driven and customer focused passenger & cargo transport, aviation training, flight catering, MRO and ground services
  • To realize its goal, the airline has embarked on a Master Systems Integration (MSI) project based on the SAP ERP suite of products

Benefits

  • 5% increase in operating efficiency with integration of all airline systems
  • 2% increase in revenue with real-time route management & network profitability calculation leading to business insights
  • 99% accuracy of Estimated Costs with Direct Operating Cost module
  • 0.5% saving of total procurement cost with integration of all systems
  • Transformed Performance Management/Balanced Scorecard
  • Development of cash concentrations by currency type in line with receivables and payables using cash position, and custom modules
  • Repository of more than 450 business scenarios enabling faster time to market

Client
The client is a leading airline based out of Africa and is one of the fastest-growing companies in the industry and serves a network of 80 passenger destinations.

Requirements
The client was looking for a robust solution to integrate all core airline systems and develop business systems using SAP solutions.

Challenges

  • 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.
  • The client also required an effective high-performing unified business and IT infrastructure to drive the transformation of its operations which is currently divided into several SBUs.
  • As part of the Airline’s strategic IT Plan, it needed to renew its application landscape for MRO.
  • To revamp vital core business processes, integrating back-office with front-office functions to improve the airline’s overall services and provide timely and cost-effective services

Solution Scope

  • Business requirement gathering, gap analysis – To validate the blueprint, identify gaps and final Blueprint produced as per the client’s final requirement.
  • Implementation of the SAP ERP and MSI Service
  • Implementation of the SAP Portal and business intelligence solution.
  • To integrate other systems such as the Passenger and Cargo Revenue accounting system, Passenger Management system, Frequent Flyer system, Crew Management System, MRO, Flight Operations system, Bank, IATA Clearing house, Medical system, Attendance System and Learning Management System to provide seamless access to all business information.
  • Custom development of modules for Direct Operating Cost (DOC) and Route Profitability calculation

Operating Process
The solution was proposed to be delivered in 4 phases.

  • SAP ERP Implementation: Integration of Non-SAP Systems
  • Portal Development & Delivery
  • DW/BI for Non-SAP
  • DW/BI for SAP

Solution Highlights :
Multiple airline systems were integrated with SAP and Data Warehouse and various business processes were defined.

Industry Specific Solutions

  • Real-time route profitability
  • Real-time direct operating cost
  • Automated Uniform Management processes
  • Revenue reorganization

Real-Time Analytics

  • 3600 functionality to collect, calculate, simulate, evaluate total flight performance

Integrated Enterprise Solution

  • SOA-based integrated solution
  • Ensure operational efficiency, cost savings, and data integrity