by Patrick Coleman, Regional General Manager, IT2 Treasury Solutions
By implementing a TMS, Etihad Airways has improved the quality and reliability of its cash and financial risk management, promoted integration between treasury and other systems, and given management reporting a boost.
Airlines have strong and proven supply chain management methodologies and resources, as a result of procuring aircraft and purchasing fuel.
Etihad Airways is the national airline of the UAE. Set up in July 2003, it started commercial operations in November 2003 with Abu Dhabi, the capital of the UAE, as its hub. Its treasury department started out using a labour-intensive process based on spreadsheets, and a high level of manual intervention. But the increasing volume and complexity of treasury operations threatened to place the department under unacceptable levels of pressure. More and more team members would have to be taken on board just to keep things going. The higher levels of treasury activity were also accompanied by heightened levels and complexity of the financial risks being managed by the team.
Accordingly, the costs and risks of treasury operations were increasing. There was a compelling need to enhance the support for treasury operations, and make them more efficient and effective. Best-practice corporate governance demanded action be taken with a critical financial department such as treasury.