Low-cost airline Flybe is installing forecasting and budgeting software to improve the accuracy of its financial planning and support growth plans.
Inca Software is installing Cognos Planning forecasting and budgeting software, which Flybe expects to have installed within eight weeks.
Airlines need to be able to react to external factors such as fluctuations in fuel prices, interest rates and currency changes.
The technology will allow Flybe to balance the cost of using its aircraft and airport equipment with demand from passengers travelling on its 108 routes.
Flybe finance director Dave Tarbet says the company has ordered several new planes, and the software will enable it to more accurately plan for and understand potential new routes.
‘We are growing at double digit rates each year and need accurate, reliable and robust information,’ he said.
‘The software is more efficient and more accurate and frees up time for financial analysts to study how to use resources most cost-effectively.’
The new software will replace a bespoke Excel modelling tool, which had become unwieldy and difficult to share with colleagues. The new software will deliver results in minutes.
‘Excel models can become too big, with just too much data to crunch through, which leads to wasting staff resources building the models,’ said Tarbet.
‘This is a great example of how finance staff can get away from number crunching and make planning, forecasting and budgeting decisions that add value to the business.’
The finance department is responsible for examining the cost of all airline activities, such as running the planes, fuel and ground handling.
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