Airpas Aviation Fact Sheets by Airpas Aviation GmbH

Company Profile Airpas Aviation AG Global market focus Represented in 5 different offices around the world, locally supporting customer on all continents

www.zen-kastanie.de

Well established; providing high quality products and services dedicated to the aviation industry More than 15 years of professional commitment and experience in the aviation industry at your personal service Provider of innovative IT solutions, support, services, and assistance within the areas of revenue management, route profitability planning, cost control, and fuel management Our software solution airpas helps airlines to achieve significant process efficiencies, cost savings, and transparency for all flight related services

Fuel Management

Overflight & Navigation

Airport Handling Fees

Catering on Board

Inflight Bars & Retail

Taxes & Security Charges

Crew Costs

Aircraft Leasing

Technical Costs

Landing Fees

Passenger Compensation

Ad hoc Flights

www.airpas.com

Airpas Aviation AG – take your cost management on a smoother flight

Streamlined and automated processes Our expertise will help to reduce your cost base and increase shareholder value

rV al u

1.4%

Euro

Airpas Aviation AG is a software provider and consultancy company whose head office is located in Braunschweig, Germany. We offer a unique route profitability and cost management software solution for airlines called airpas (AIRline Profitability Accounting Solution), and our dedicated team of professional developers and project managers is also available to provide competent and cost effective consultancy to the aviation industry.

eh ar

1.400.000

Route network planning Fuel management Forecasting & Budgeting flight profitability Supplier contract management (electronically) Electronic Supplier Invoicing (including EDI and XML formats)

1.600.000

1.200.000 1.000.000

Rang

f eo

r mp

800.000 600.000

0.3%

400.000

With a close relationship to IATA, we offer all airlines (scheduled, low cost, charter, cargo) the opportunity to significantly improve their internal processes and at the same time increase shareholder value through the use of our core software product airpas. Our highly qualified team has more than 15 years of experience within the aviation industry, and has successfully utilized this expertise to dynamically respond to the current needs for change. By developing and implementing a custom-made IT solution and providing specialist services for airlines, Airpas Aviation AG adds a new dimension to your cost saving plans – all in one easy operation.

200.000 0. Direct Operating Cost Base 100.000.000 150.000.000 250.000.000 350.000.000 500.000.000 Annual Cost Savings

289.000

427.000

704.000

980.000

1.393.000

Take your cost management on a smoother flight – airpas will guide you around the turbulence and help bring your shareholders safely on land.

Improved visibility of your revenues and direct operating costs Greater control of your costs for flight related services

from cost to savings Airpas Aviation AG develops and markets software and services for the worldwide aviation industry For more information about our company and products, please contact us at team@airpas.com or visit our website www.airpas.com Head office: Airpas Aviation | Theodor-Heuss-Straße 2 | D-38122 Braunschweig, Germany | phone +49(0)531-8852-9100 | fax +49(0)531-8852-9500

team@airpas.com

Reasons for Low Cost Carriers to Partner with Airpas Aviation AG

www.zen-kastanie.de

Unique expertise in the design of business models, the buildup of new airline companies as well as implementation of relevant internal structures, processes and systems Customized support in implementing business plans, in running airline operations to achieve business objectives and in streamlining business operations to face the dynamics of the aviation industry Cost-effective and powerful IT solutions for revenue management, newsletter distribution, and profitability calculations Implementation of an integrated system to support contract management, route profitability calculation, budgetary planning and invoice checking for flight related services Transparency to overall service data and costs Assist in preparing concrete business cases that consider the market environment and meet the expectations of both shareholders and management (Route Network Analysis) NewSkies Implementation Management â&#x20AC;&#x201C; a reservation and distribution system

www.airpas.com

Airpas Aviation AG – challenge booming markets Low-cost carriers (LCCs) have dramatically changed the aviation industry in recent years. A typical LCC business model is heavily geared towards cutting unnecessary costs related to labor, aircraft and fuel, infrastructure, distribution and seat density.

The business model considers options regarding flight destinations, aircraft types and sales channels, as well as the general business decisions as to which services should be handled internally or outsourced to a third party. Examples include: aircraft, crew, IT.

Airpas Aviation AG has been part of a variety of projects for both airlines and investments companies to develop and set up low-cost models or to upgrade the LCC business to a hybrid model so as to adapt to growing competition and booming market conditions.

In close cooperation with carrier management, Airpas Aviation AG will develop a detailed plan outlining the required organization, fleet, flight program, services and the necessary aircraft configuration to produce a successful and profitable airline venture.

Engaging professional and dedicated project management teams, Airpas Aviation AG fully analyzes the business opportunities and the market environment of a planned or already established low-cost carrier. airpas supports the implemention of business plans, in running airline operations to achieve business objectives, and in enhancing business models overall.

Sit back, fasten your financial safety belt, and relax. Airpas Aviation will put you in control of your costs and bring your shareholders safely on land.

Flight Profitability System – The Calculation Concept

Sales

Flight Preparation

Take Off

Journey

Landing

After Flight

Profit

Direct operating costs Revenues: Scheduled Bookings Block agreements with tour operators Seat Sales Cargo Revenues

Passenger Taxes Departure Tax, Security Charges, etc. Airport Charges Handling Fees, Check In, Push Back, etc. Fuel uplift: Fuel, Differential

Control Margin:

Catering on board: Meals

Pax Taxes Check-Out, Landing Fee, Baggage, etc.

Fuel burnoff: Actual burnoff Overflight and Navigation charges

Flight profit Series profit Fleet profit etc.

Other cost elements and allocated flight costs (e.g. De-icing) Allocated overheads: Maintenance, Admin. Sales and Distribution, etc.

team@airpas.com

Your Reasons for Managing Fuel Using airpas Centralized contract management with global access via the internet

www.zen-kastanie.de

Faster, more efficient and accurate processes for matching supplier invoices â&#x20AC;&#x201C; against ACTUAL contracts Improved checks and faster payments to suppliers using established electronic interfaces (XML) with suppliers Integrated planning and risk management Simulation of fuel market developments and their impact on route profitability Decision support system for predicting and hedging fuel volumes and associated currencies Online management information tools to evaluate the cost of alternative suppliers before contracting volumes Our software solution airpas helps airlines to achieve significant process efficiencies, cost savings, and transparency for all flight related services More than 15 years of professional commitment and experience in the aviation industry at your personal service

www.airpas.com

Airpas Aviation AG â&#x20AC;&#x201C; adds a new dimension to your cost saving plan The rising cost of fuel has cancelled out many of the general cost reduction initiatives introduced by airlines. Hedging against future fuel price increases will only partly protect profits. The airpas fuel management module provides all the necessary functionality to accurately predict and manage volumes. airpas supports verifying supplier invoices, as well as managing hedging variances through process and time.

Creation of index lists

Provision of supplier (contract) data 1. Purchasing

5. Financial reporting & statistics

Production of reports

Implementing airpas will afford you the ability to predict uplift and burn volumes for different fuel markets and provide you with a tool to manage contracts. Supplier payment terms can be reduced to generate significant discounts, directly improving contribution margins per flight.

2. Fuel planning

airpas supplier business processes

3. Fueling 4. Invoice checking and booking

MIS

Accounting system

Flight planning system

Logging of fuel uplift volumes by airport and supplier ACARS

EDI invoices

Generation of expected fuel bills airpas indicates use of contract and price information

The information about fuel burn-off and uplift volumes is associated to your flight program and delivered from a source system. airpas supports multiple fuel uplifts from different suppliers and is able to process and check electronic invoices. Calculate fuel inventory and burn using a FIFO, LIFO, or average price model. Density figures are then used to convert between fuel uplift and consumption. For budget planning and ad-hoc calculations fuel data is based on statistical data. These statistics can be maintained manually or are generated based on existing imported fuel values. They are stored within airpas in different parameter sets to enable additional dimensions for analyses. A scheduled process will calculate fuel costs for each sector of the flight program along with add-ons, fees and taxes.

Calculated results can be analyzed with user specific Oracle Discoverer reports. Therefore, analyses of fuel volume requirements and comparisons between different flight schedules (data versions) are made possible. airpas provides a fuel cost calculation based on fuel market prices, on an individual basis per supplier or a combination of both. Take your seat in the airpas cockpit and start to take control of your flight profitability.

from cost to savings Airpas Aviation AG develops and markets software and services for the worldwide aviation industry For more information about our company and products, please contact us at team@airpas.com or visit our website www.airpas.com Head office: Airpas Aviation | Theodor-Heuss-StraĂ&#x;e 2 | D-38122 Braunschweig, Germany | phone +49(0)531-8852-9100 | fax +49(0)531-8852-9500

team@airpas.com

Managing Supplier Invoices Electronically Using airpas

www.zen-kastanie.de

Flexibility to change, add or amend invoice items, sectors, suppliers and results Centralized access to contracts and flight log information during the reconciliation process via hyperlinks Overview of the expected and invoiced fuel uplift in liters and gallons for every fuel invoice Local maintenance of aircraft, airport, country, VAT, and customer cost centers Process and maintain different currencies for contracts, invoices, accounting and bookings by use of a conversion tool Multiple date ranges for managing fluctuating exchange and fuel rates Workflow status for every invoice, including acquired, released, account allocated, released for approval, transferred to accounting system, and booked Capability to handle VAT or other taxes Calculation of outstanding Direct Operating Costs (DOC) accruals and monthly or annual reserves. Reserves can be printed or exported to a local ERP or accounting system Supports multiple interface formats such as EDIFACT and IATA XML More than 40 electronic supplier interfaces already available

www.airpas.com

Electronic Supplier Invoices – Obtain Your Competitive Edge Trough Innovation At present, the worldwide aviation industry experiences at least some level of cost deviation on 90% of their DOC invoices, often significant. These discrepancies include incorrect rates, services, charge drivers or exchange rates. According to an independent study, more than 85% of inaccurate invoices are caused by incorrect charge drivers such as block-hours, flight times or uplift volumes, rather than price.

When a user receives and accepts this electronic file into the system, airpas automatically checks all invoice line entries as well as the operational cost driver information such as volume of uplift or prices. airpas highlights all discrepancies to the user using a highly efficient filter system that shows those lines in error on a clear and user-friendly on-screen display. In addition, airpas indicates the reasons for the error, example:

Airpas invoice reconciliation functionality takes invoice checking activities to a new level, by shifting the focus onto the commercial benefits to be gained from identifying incorrect supplier charges, rather than on the volume based invoice processing task itself. airpas imports performance figures and data from flightlogs and compares them with the charged service. Credit notes, disputes or status reports are then generated automatically and can be electronically exchanged with the supplier. The Airpas invoice reconciliation process is an integrated part of the overall workflow in accounts payable. airpas can integrate with XML invoice procure-to-pay processes, utilize the direct EDI interface, or handle supplier specific formats.

Flight charged on a previous invoice Incorrect volume of uplift Incorrect supplier price Incorrect supplier names of references with a shortcut selection key that allows the user to hyperlink back to the relevant operational data and price in-formation in order to establish the cause. A business process would then commence, in order to resolve the issue by either acceptance of the invoice position, or to communicate with the supplier for a credit note or amended invoice. Take your seat in the Airpas cockpit and start to take control of your supplier charges.

One integrated accounts payable process for DOC invoices

Reconciliation

Expected invoice Period XY4712 Handling Parking

Actual flight program

Supplier 1.5. – 31.5.07

EUR 370,– EUR 37,–

Actual invoice Period XY4712 Handling Parking

Supplier 1.5. – 31.5.07

Correction

EUR 370,– EUR 60,–

Supplier

Actual flight logs

Confirmation Accounting

interface to finance system

Dispute

Business Process Resolution

Credit Note Supplier

team@airpas.com

Reasons for Managing Ground Handling Costs Using airpas

www.zen-kastanie.de

Support the supplier selection process with quick and easy cost simulations considering alternative suppliers and flight programs Gain full visibility of supplier costs at a detailed level and based directly on contracts Easily manage and control passenger and government taxes Drive down costs from suppliers by using airpas during contract negotiations Focus on providing accurate route profitability information incorporating landing fees, taxes, and all ground handling charges Integration with operational and planning system to ensure efficient evaluation of future costs and revenue Automate your invoice and data exchange with airports Improves back office efficiency as well as supports up-todate information exchange and dissemination among business units (such as supplier contract information, currency requirements and direct operating costs to support sales functions)

www.airpas.com

Airpas Aviation AG – presenting unique solutions at an affordable price Airpas Aviation AG remains committed to new and innovative cost saving ideas, presenting unique solutions at an affordable price. Ground handling (including government and passenger taxes) are one of the highest costs that airlines will incur and therefore requires careful control. Last minute operational changes can affect costs quite dramatically, adding more than 20% to the baseline expenditures without realization by financial managers. airpas integrates with the airline’s operational systems to automatically re-calculate the costs of ground handling services following operational changes, and provides immediate analysis of their impact, taking into account items such as: Passenger volumes Flight delays/cancellations Fleet changes Airlines regularly lose out to airports during negotiations due to the lack of visibility of the necessary information to obtain the most economical service package. The airpas software fully supports the procurement process by quickly and easily evaluating contractual price proposals and alternative supplier offers. Assess the risk to your baseline profitability and direct operating costs by using airpas to simulate different scenarios: Flight schedules Fleet mix Price changes Exchange rates

Create passenger load factor and payload reports

Provision of supplier (contract) data 1. Purchasing

5. Financial reporting & statistics

Production of reports

2. Ground Handling

airpas indicates use of contract & price information 3. Boarding 4. Invoice checking and booking

MIS

Accounting system

Flight planning system

Logging of check in passengers by airport ACARS

DCS Depature Control System

Generation of expected ground handling bills Supplier charges

Government and airport taxes can prove to be both complex and time consuming to manage. airpas services offers airlines automatic updates of information relating to changes in tax rates globally, streamlining processes and freeing up resources to concentrate on current commercial challenges faced by airlines. Airpas Aviation AG has more than 40 suppliers exchanging invoice information electronically into the airpas system. Studies have shown that overbilling by suppliers are common and that only 15% of incorrect charging is a result of pricing errors. The remainder is due to changes in ‘charge drivers’ such as incorrect passenger loads or aircraft weights. Manual processes or legacy, in-house developed systems, means that airlines are losing millions of Euros as a result of poor quality checks. airpas typically checks 90% more data on supplier invoices than with manual processes! Take your seat in the airpas cockpit and start to take control of your flight profitability.

team@airpas.com

Manging Crew Costs Using airpas: Easily prepare Accruals, Budgets and Forecasts, personnel costs based on real flight programmes and data Allocate crew personnel costs on a sector basis and integrate costs into flight profitability reports automatically

www.zen-kastanie.de

View costs on several different levels of detail using Oracle Discoverer Allocate costs on a variety of cost drivers Manage hotel accommodation and transportation costs of crew personnel through Accrual calculations Calculate accruals quickly and easily based on operational data Capture orders with suppliers for automatic matching of invoices Easily maintain supplier contracts of hotel and transportation companies Validity periods stored in the contracts to gain a better overview of pricing history Checking of hotel and transportation company invoices is improved by an expedited functionality including an interface to the accounting system Easily recognize discrepancies in quantity or tariff Capture and analyse costs by reason for unscheduled overnight stays or ad-hoc transportation

www.airpas.com

Crew Costs â&#x20AC;&#x201C; A Competitive Edge Through Innovation Like in any other industry personnel costs play a significant role in the operational functions of an airline. Crew personnel, transportation and hotel expenditures have to be taken into account when dealing with direct and indirect operating costs. airpas makes the financial impact of crew-related activities highly visible. Crew personnel costs can be calculated on a sector level basis with the highly flexible use of cost drivers such as block hours or working days. This allows you to utilise the functionality according to your business needs. Distribute personnel costs across the relevant flights and sectors and generate the appropriate accruals at month end. Average values can easily be stored and then multiplied by a chosen cost driver for Budget and Forecast calculations. Reservations and booking data is imported from your crew management system. In combination with the contracts maintained in airpas, expected invoices of hotel and transportation companies are created automatically. The invoice checking process is not only dramatically improved, but it allows your staff to allocate more time on quantity and tariff discrepancies delivering REAL commercial benefits. Using the integrated decision support system Oracle Discoverer, improved reporting brings better visibility on how and where your airline has spent money on transportation and hotel accommodation. This puts you in the advantageous position to renegotiate contracts in a dynamic way, delivering immediate commercial gains.

Provision of supplier (contract) data

Crew planning system

1. Purchasing

4. Financial reporting & statistics

Production of reports

airpas indicates use of contract & price information

3. Invoice checking and booking

2. Crew transportation and hotel accomodation

Provision of invoices

MIS Accounting system

Generation of expected supplier bills

The crew module is just one of the latest innovative developments introduced to the airpas product and there is a vivid array of further developments underway. After having decided for this functionality you could become an active part in customizing it according to your special needs. Let airpas put you in the jump seat of crew cost management.

from cost to savings Airpas Aviation AG develops and markets software and services for the worldwide aviation industry For more information about our company and products, please contact us at team@airpas.com or visit our website www.airpas.com Head office: Airpas Aviation | Theodor-Heuss-StraĂ&#x;e 2 | D-38122 Braunschweig, Germany | phone +49(0)531-8852-9100 | fax +49(0)531-8852-9500

team@airpas.com

Benefits Derived From Managing Cargo Using airpas: Streamline business processes as well as maintain an overview of all flight related costs, results, and budgets

www.zen-kastanie.de

Manage cargo payloads and associated costs Flexibility to adapt to any business model â&#x20AC;&#x201C; pure freighter, international express service, or a mixed passenger and cargo operation Centrally-housed reporting based on profitability and costs summarized by aircraft, route, customer or other desired criteria Centralize all contract management with suppliers for handling, landing, over flight, fuel or other flight related services using global access via the web Check all paper and electronic invoices from suppliers quickly and accurately using established XML and EDI interface formats Financially plan, coordinate and evaluate your route network and quickly calculate profitability for ad hoc flight opportunities Manage and oversee both direct and indirect costs of operation irrespective of in-sourced or outsourced labour Easily distinguish weight of cargo loaded, carried, or unloaded for multipleleg sectors and routes Control and maintain visibility of all complex tariffs and taxes Quickly evaluate different flight route scenarios and alternative suppliers and their impact on your profitability

www.airpas.com

Airpas Aviation AG – Boost your competitive edge Air cargo transport is a dynamic, challenging, as well as competitive market. Over the next 20 years, air cargo will grow at rate of 6.1 percent per year worldwide. (source: Boeing, 2006).

Flight planning system

Emerging regions like Asia, especially China, offer huge opportunities for air express and cargo services. These dynamic market conditions produce unsteady landing, handling and especially fuel prices at airports and require a highly efficient cost management system for airlines. The airpas software application provides all the necessary support and automated functionalities to accurately predict and manage cargo volumes, flight schedules, and all associated costs. airpas makes it easy to verify, process and manage the huge amount of incoming supplier invoices. Implementing airpas affords the capabilities to accurately predict all flight related costs and provides a tool to manage contracts electronically. Using airpas, vendor selection can be more easily managed and fees better negotiated to generate improved discounts, directly improving contribution margins. airpas receives information concerning cargo weights (loaded, carried, and offloaded) directly from your operational system and uses this information to accurately calculate expected costs and revenues. airpas also offers an electronic interface with suppliers for efficient invoice checking.

Creation of cargo payload reports

Provision of supplier (contract) data

1. Purchasing

airpas indicates use of contract & price information

2. Cargo Handling, Loading, Unloading

ACARS/SITA and others

Airport enters cargo load details

4. Financial reporting & statistics Production of reports

3. Invoice checking and booking

EDI Invoices

MIS Accounting system

Generation of expected supplier bills

Historic statistical information can be used for future budget planning and adhoc calculation purposes. Scheduled processes will load and calculate all costs for each sector of the flight program along with any additional fees, taxes and/or charges. Results tabulated within the system can be analyzed with user specific reports. These reports are easily defined with a powerful reporting tool built within the airpas system. Put your costs in “the hold” - let airpas transport you to improved profitability and a lower cost base.

team@airpas.com