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One of the richest and largest Indian airlines and the market leader in the domestic sector Jet Airways started as a major commercial Indian airline on 5th May 1993 with a fleet of four Boeing 737-300 aircraft. The most important domestic hubs are located at Mumbai and Delhi and the international hub is located at Brussels airport, Belgium. The airline is owned by London businessman Naresh Goyal and it operates more than 400 flights to 67 destinations across the world. On 12th April 2007 Jet Airways announced that it would take over Air Sahara for a total of US $340 million dollars in an all out cash deal. It renamed Air Sahara as Jet Lite which was used as low cost carrier. It currently consists of 10,019 employees. An alliance was formed between Jet and its rival Kingfisher airlines in October 2008 which is primarily an agreement on code sharing of both domestic and international flights, reducing wastage of fuel and sharing of flight programs. The market share of jet airways is 26.9% in terms of total number of passengers which makes it the market leader in the airline travel.
Need for Information Systems in Airlines
In the present market scenario information which is given to the computer has to be processed at a higher rate and transferred to the appropriate departments of the company for further use and storage so that the information can be accessed at any time. Also parameters such as security and performance should also be taken into consideration. The management of information is the one most important part of the airline industry and it cannot be done manually in todayââ‚¬â„¢s present market scenario hence a fast information management system is required which has to cover certain major areas in the airlines sector. The different types of information systems which are used are-
Finance and Accounting Information System
Sales and Marketing Information System
Manufacturing and Production System
Human Resources Information System
These information systems are the main components which are further divided into many levels and sub-levels according to the complexity of the airline company i.e. the various departments, the various services which are given. Jet airways has implemented the information systems by taking into account various requirements they have to fulfill and the various services that need to be implemented to become the market leader in the domestic airlines sector.
Finance and Accounting Information Systems
The finance and accounting systems keep track of the airlines financial data and the funds which flow in and out of the airlines. Jet airways is using a revenue accounting system for passenger transactions which has been founded on the years of expertise and studying of the various parameters which are to be included in the system. The Airlines Financial Management system which is being used by Jet Airways is from Kale Industry solutions. The software which is used is also provided by Kale and it has a number of challenges which have to be overcome.
Expense Accounting and Budgeting challenges in Jet Airways Finance Software
The data which is obtained has to be processed and the expenses, profits etc have to be stored and also transferred to the right departments for further analysis and storage. The various challenges which occur are-
The Finance department is responsible for the expenses occurred during various services such as refueling, landing, entertainment services at many locations around the world. The expenses occurred at different parts of the world are never equal and hence a track of the expenses is made by the system. In the past these were carried out using spreadsheets and calculators and the debit and credit was entered manually which was time consuming. Hence the automation of these processes was the only remaining solution. The software was to be developed by gathering all requirements that the technical experts required in the presence of the stakeholders.
The Finance department is responsible for the collection of information from different airports and process the information to create monthly reports and send them to the headquarters of the airline to be stored. The total expense budget had to be calculated manually which was time and manpower consuming hence the solution was to develop a system which could perform the tasks in less amount of time and produce the necessary output. A multi-tiered application with access to the web browser was developed to overcome all the shortcomings.
Earlier all the financial data was processed at one location only and hence there was a need for decentralization i.e. the data would be divided and each processing center would receive only part of the data and hence the analysis of the data would be more accurate and hence the profit would increase. The solution was to create databases at each processing center and the databases would be able to communicate with each other and hence the processed information can be shared among different airline personal.
The airlines have a problem in dealing with the manpower budgets and overhead budgets as it involves a series of complex mathematical calculations which cannot be done using spreadsheets or calculators. The solution is to develop an automated system Capex which replaces the older manual system and hence saves a lot of time and effort.
The manual systems are now being replaced by sophisticated Finance systems which increase the productivity and profit of the airlines and also give a much more detailed analysis of the data.
KALE Financial Management Solutions Software
Profit is the main motivation for any airlines using the available resources and budget. The finance management system developed by Kale is designed to optimize the processing of the financial data into information in a short amount of time. Hence over 80 airline companies including jet airways are using the financial system developed by Kale.
The financial system developed consists of 4 components which are given as-
Dashboard- The dashboard is the art of converting large amount of raw data into actionable information which is the basis for taking strategic decisions in every department of the organization. The dashboard is based on a unique KPI (Key Performance Indicator) model which is helpful in mapping various parameters of the airlines like finance, operations and human resources. The chief commercial officer can personalize the dashboard as per his needs which results in better decision making and increased profit. The key features of the dashboard are-
The type of Key performance indicators can be selected with the help of the dashboard accelerator from the pre-defined KPIââ‚¬â„¢s.
The interface is interactive and customizable and user-friendly
The software can be integrated into other airline operational systems easily
The performance of the system can be monitored using the KPI models
The software can make decisions based on the data and the KPI models
DOC Audit- Direct Operating Costs payable Audit services relate to the various employee management such as ground handling, catering, airport handling and navigation of the airplanes. They account for 70% of the total revenue of the DOC and hence need to be properly managed. The key features of the DOC are-
Process Efficiency-The cost leakages are identified through vendor invoice reconciliation which is efficient to compute the data in real time to find the cost leakages and improve the efficiency of the system. Only the approved invoices are sent for further processing and settlement.
User Authorization- The information can be accessed only by the authorized personal and any invalid invoice information can be corrected by them.
MIS reports- The over-billing and variance analysis reports are transported to the authorized personal.
Finesse MBS- The Miscellaneous Billing settlements has a new set of standards in the modern airlines industry as there are many challenges in automating the process as the MBS is the least automated area where the process have been done manually. The Simplified Interline Settlement provides an opportunity to reengineer the process and to make it centralized and standardized thereby reducing billing costs and improving cash flows. Using Kale the system is improved upon and it does not change the internal IT software it simply upgrades the software. It allows enables Ad-Hoc communication between the different departments. There is a highly strong contract management system The Key features of the MBS are-
Service Management-The services are grouped and mapped under the SIS category and charge codes and are also mapped under GL account codes.
Contract Management-This defines the various contracts, taxes, surcharges which the airlines have signed
Flight MBS- It is the ability to define inward and outward billing services for flight schedules
Service fulfillment- The data is captured in this case and scanned to reduce manual labor.
SIS, accounting interface-Creation of information system for SIS outward billing and processing SIS inward billing.
Flight Profitability System- FPS is basically a system which provides the flight paths with least amount of expenses occurred and other standard operational vital information and other commercial information which increases the profits of the system. Kaleââ‚¬â„¢s sophisticated Flight Profitability system provides all the old features in addition to new ones such as decreased processing time and better flight routes. The Features of FPS are:
Actionable Reporting & Dimensional Analysis
Managing information of multinational empire cannot be done manually in todayââ‚¬â„¢s growing economy, most of the processes need to be automated to save time and money. Jet airways like any other airline has many goals in mind such as profit, better customer service and hence for the financial department Kale industries was chosen to provide for the financial management system which has given excellent results as Jet airways is the major domestic airline with a market share of 26.9%. The software performed to all specifications and hence more than 80 airline companies are using the software. The Information system used for passenger reservation is ifly which is an IBS solution.