Cost audit and analysis of aircraft operation efficiency

What's it?

Independent audit of the operating company's expenses for aircraft maintenance and operations, covering the specified period (half-year, year, or entire operating period).

This analysis evaluates the aircraft operator's effectiveness in managing the entrusted aircraft and ensures comprehensive reporting to the owner. The goal is to enhance transparency and predictability of operations, align service quality with owner expectations, and optimize aircraft management practices based on operator capabilities, VIP service standards, and regulatory requirements.

Goals:

• Minimizing Aircraft Maintenance and Operating Expenses

• Boosting aircraft operational efficiency and predictability, leading to lower costs, reduced downtime, fewer delays, and minimized regulatory risks.

• Assessing the operator's adherence to international security standards.

• Developing recommendations for improving aircraft operation management to meet owner expectations.

What is included in the service:

Evaluation of the terms of contracts related to the operation of aircraft: contracts with the management company, maintenance contracts, aircraft basing services contracts, aircraft fuel supply contracts, contracts for the purchase and delivery of spare parts, service contracts at off-base airports, VIP passenger service contracts, recruitment and training contracts / advanced training of aviation personnel, on-board catering contracts, etc., including price lists and payment terms /deadlines.

Collecting draft contracts or commercial offers for goods (aviation fuel, on-board supplies, flight food) and services from companies that compete with existing suppliers and contractors, for example, maintenance service providers.

Analysis of the terms of employment contracts with members of the flight and cabin crew and ground personnel, including provisions on the payroll and bonuses, availability and completeness of job descriptions, staffing, vacation schedules, etc.

Analysis of documents regulating the purchase, storage, use and write-off of on-board supplies.

Reconciliation of the amounts accepted for payment of bills and actual expenses incurred and analysis of identified deviations

If necessary, or at the request of the owner In C - obtaining and comparing the terms of alternative proposals for the management of aircraft operation, for aviation fuel supply and for maintenance and repair of ALL.

If necessary, or at the request of the owner In C - obtaining and comparing the terms of alternative proposals for the management of aircraft operation, for aviation fuel supply and for maintenance and repair of ALL.

Development of practical recommendations on cost optimization, to equalize sharp deviations in the amounts of payments from planned / projected values, to increase the reliability of budgets and greater clarity of reports on spending

Verification of invoices from contractors for the selected period of operation, search and analysis of deviations in the cost of services from the values in the price lists relevant at the date of billing.

Obtaining up-to-date price lists and possible service discounts from suppliers of goods and services operating for this aircraft (on behalf of an independent company).

Analysis of planned large operating costs, as well as planned and recent costs for capital and unscheduled repairs of the aircraft, its key components, interior items and on-board equipment. Comparison of these costs with market rates obtained from existing and alternative service providers and contractors.

Checking the order and timeliness of payment of bills in order to prevent fines and penalties for late payments and the occurrence of overdue debts

Analysis of the expediency of existing one-time and renewable deposits on counterparty accounts and comparison of the received terms of service, forms and terms of payment with market benchmarks.

Analysis of the reasons for the longer-than-predicted passage of periodic and unscheduled maintenance with the development of recommendations for reducing downtime due to technical problems and an action plan for AOG (aircraft-on-ground) situations

Analysis of the effectiveness of the transfer of aircraft into commercial operation (for charter flights) during periods when it is not used for flights in the interests of the owner, and the development of practical recommendations to increase revenue from charter flights.