Posted on 12/04/22 by Jodi Reimer


At every airport, international and domestic, each airline must lease retail space, kiosks, line dividers, carpet and other items to have a presence at the airport. In airports where they don’t have much traffic, they can sublease their space to other airlines. A new accounting industry standard was put in place that said companies must show leases on their general ledger to help report income and capture debt. The manual process the major U.S. airline had wasn’t accurate or efficient. They reached out to the CPS team for guidance to gain visibility on predicted missed revenue.

Key Challenges

The major U.S. airline was using an Access database to manage their leases which was old, chaotic, and inaccurate. Employees were manually entering information into Access and then another system on backend was feeding invoices into SAP. This process became super rigid, and few employees knew how to update it on the backend. Additionally, if the server went down, all their contracts would be lost.

The airline was worried about their current system, ease of use, making on time payments and capturing sublease payments. They did not have an audit trail on who created a contract, who submitted it, when it expires, why it expired and making automatic payments. Thus, the airline discovered they were losing out on a lot of money due to:

No visibility into their contracts

No capability to generate reports on contract info

Using a manual process for insight into expiring contracts

No way to track sublease payments

Results

CPS migrated all the major U.S. airline’s information into our system and built payment plans out for all existing contracts. The major U.S. airline now has a landing page where they can view, create, and update contracts. Additionally, they can make one-time payments using our forms and workflows. They also have an entire platform for reporting on sublease information to guide strategic initiatives and decisions. Lastly, the major U.S. airline now has a clean database with back-ups and make monthly payments that automatically post to SAP.

Metrics

$10M

captured yearly revenue in missing sublease payments

$87M

monthly processed payments in new system

100%

visibility into contracts


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