The ongoing industry transition to 100% Offers and Orders, has a far-reaching impact on the airline organization structure and business processes. Finance is one of the many business functions able to take strategic advantage of this transformational change to build simplified accounting processes leveraging modern technology.
Embarking on a financial management transformation enables airlines to align their financial management framework with the evolving landscape of airline retailing based on Offers and Orders. Today's traditional financial management framework, based on classic and legacy-driven Revenue Accounting practices, is unable to fully support the changes driven by Modern Airline Retailing. By transforming financial management, airlines can fully embrace the shift towards customer centricity, personalization, and innovative new products and services for the traveling customer.
With the above in mind, the IATA Industry Financial Advisory Council (IFAC) Airline Retailing for Finance Working Group developed Financial Management in Offers and Orders Environment (v 1.0) with the objective to provide an overview of the need for a financial management transformation, alongside the evolving airline retailing transformation.
The document emphasizes the importance of redefining the financial management framework in line with future modern retailing practices and provides insights into the capabilities and integration requirements within the Modern Airline Retailing Business Reference Architecture. It also outlines the impact of the transition to Offers and Orders on various financial management capabilities, including Customer Order Accounting, Partners/Suppliers Order Accounting, General Accounting & Revenue Recognition, Corporate Finance, Treasury & Risks, Enterprise Performance Management, and Tax Management.
Explore the new Airline Financial Management framework for Offers and Orders via our interactive document.
