Mercator signed up for airline accounting deal

Malaysia Airlines has enlisted the services of Mercator to provide revenue accounting solutions for its passenger and cargo operations

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By  Administrator Published  December 29, 2006

Malaysia Airlines has enlisted the services of Mercator to provide revenue accounting solutions for its passenger and cargo operations.

The multi-million dollar deal will see the national carrier extend its relationship with Mercator by outsourcing its entire passenger revenue accounting data processing operation to Emirates’ IT division.

The airline will now send electronic data and scanned ticket images to Mercator’s facilities in Dubai for analysis, allowing it to benefit from enhanced revenue through more accurate billing and verification, reduced accounting costs, boosted productivity and the elimination of training costs.

Tengku Dato’ Azmil, chief financial officer of Malaysia Airlines, said Mercator’s passenger revenue accounting solutions had already proved themselves within the airline over the past two years, giving the carrier the confidence to outsource this process.

“By designating these additional functions to Mercator, Malaysia Airlines will leverage on the solution provider’s extensive experience and knowledge in aviation revenue accounting services and familiarity with the specific requirements and processes of the Rapid system,” said Azmil.

“With this outsourcing, the Malaysia Airlines’ team will focus on value-added and strategic revenue accounting functions namely, revenue preservation, as well as analytical and reporting functions.”

The agreement is part of Malaysia Airlines’ business turnaround plan (BTP) to outsource non-sensitive routine processes and mobilise manpower for more intense and rewarding cross-functional tasks. As part of the deal, 53 of 101 airline staff performing passenger revenue processing functions will be redeployed within the company, while the rest will remain to improve strategic revenue accounting functions.

Malaysia Airlines is also deploying Mercator’s Rapid revenue accounting solution at its cargo division to more effectively control operations. Dato’ JJ Ong, senior general manager of the division, said: “Our business is growing rapidly and we need to clear the way for informed strategic decisions.”

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