Conducting invoice reviews and audits can be eye-popping. Fortunately, standard practice within the civil aviation industry is at a high level in terms of integrity and quality. Many aircraft operators run their companies to these high standards, but there are glaring exceptions regularly reported. Here are but 25 examples from a long list:
This list is a sampler. There are variations on these themes and a great many others that could be added. This message is not just that abuse occurs,but more importantly that, it is preventable.
Prevention begins with The Aviation Home Office, a team of professionals who know exactly where to look when they review an invoice. Invoice scrubbing can quickly help determine whether a service provider’s practices are acceptable, whether invoicing or operational practices need to be modified, and, in extreme cases, whether new management arrangements are necessary.
Careful due diligence on behalf of an owner almost invariably saves money, and often large amounts of it. Specific customer audit rights and other safeguards should be part of every management contract, along with other customer controls. Qualified expert advice is essential both before and after management arrangements are in place. Regular professional invoice reviews, coupled with periodic audits of the management company should be a must. Blind trust is unwise and always expensive. You need to know what to look for and go to the trouble of looking. As a U.S. President once said …