3. Today
Jun Jul Aug Sep Oct Nov Dec
Budget+ Launch
6/5/2017
Budget Guidelines
6/11/2017
Budget kick-off
6/12/2017
Overheads input cut-off
7/15/2017
Head count input cut-off
7/17/2017
Capex input cut-off
7/20/2017
2017 Projections
8/30/2017
Final Operational Plan
9/10/2017
First review with VPs/EVPs
9/18/2017
Fiscal Budget submission
10/31/2017
Submission to Board
11/26/2017
Upload in SAP FM
12/6/2017
Circulation - Schedule 3
6/8/2017
Draft Operational
Plan
7/12/2017
Direct Operating Costs calculations
8/10/2017
Operating Revenues calculatons
8/10/2017
Finalization - overheads - capex - headcount
8/15/2017
Budgeted Balance Sheet & Cash Flows
8/22/2017
Budget consolidation - 1st draft
8/30/2017
Final review (CEO & EVPs)
10/15/2017
Budget submission to the DG
11/7/2017
Will consist of sessions with CEO and EVPs – Daily one EVP
Will consist of sessions with CFO and EVPs
Timeline
5. Process – Budget Elements
5
Consolidated
Budget
Budgeted P&L
Operating Revenues
Pax Revenues Operating Plans
Other
Ancillary Svcs
Operating Plan
Calculations (Incidental
Revenues)
Operating Expenses
Direct Operating costs –
Variable
Operating Plan &
Calculations by Relevant
deptt.
Direct Operating Costs –
Fixed
Schedule 3 (submitted by
relevant deptt)
Indirect Operating
Costs/Overheads
Budget +
Budgeted Balance Sheet
& Cash Flow
Capex
Capital Assets
Budget+ along with case
studies
Capital Projects
Budget+ along with case
studies
Head Count
Regular Staff Direct Hiring
Budget+ Head count
module
Contractual Staff
Direct contract Budget+ HR Module
Indirect contract Budget+ HR Module
Online tool to gather information from cost centers. It also manages
workflows for budget submission to higher levels
These are templates circulated by budget department for submission
of information by functional areas
Cost centers are required to submit case studies to justify their capex
along with data entry in Budget+
Cost centers are required to submit case studies to justify their capex
along with data entry in Budget+
Cost centers are required to confirm their existing head count loaded in
budget+ along with mentioning requirements for additional staff. This
will be forwarded to HR for estimating costs of new hires.
Cost centers are required to budget for their existing staff as well as
new staff expected to be hired on direct contract basis.
Cost centers are required to budget for their existing staff as well as
new staff expected to be hired through third parties.
Operating plans include expected revenues along with relevant
statistical data
Operating plans include expected level of operations. DOCs are
calculated using methodologies specifically adopted for each cost
element.
These estimates are provided by commercial department based on
their estimates for upcoming year.
Revenue from ancillary services . This is based on operating plan
finalized by commercial division.
Budgeted Balance sheet is
prepared by taking into
account budgeted income
statement and other
expected movements in
receivable/payables and
financing arrangements.
6. 6
Budget Process Map
Budget+ go live.
Circulation of Budget
guidelines
Financial Planning &
Budgeting
CEO
CFO and
Head of FP&R
EVPs and VPs
Start
Concerned
Departments
Initial review
Calculation of centralized costs
Revision of Overhead, Capex and
Headcount based on observations
Communicate
observations to
GM’s
Consolidated Annual
Budget
2017 forecast
Projected B/S 2018
Projected CFS 2018
Draft
Operatiional
Plan
Data entry in
budget+
A
DG
1 2 3
4
Start
7. 7
Budget Process Map
Financial Planning &
Budgeting
CEO
CFO and
Head of FP&R
EVPs and VPs
Concerned
Departments
DG
Final Operational
Plan
A
Incorporation of
initial Revision
Preliminary Discussion
with EVP/VP
Review with CEO
Budget Review
Sessions with
EVP/VPs
5
Incorporation of
Revisions
Submission to
Holding CO.
Revision of
centralised costs;
Discussion (Final
Results)
Reconsolidation
of budget
B
End
8. 8
Budget Process Map
Financial Planning &
Budgeting
CEO
CFO and
Head of FP&R
EVPs and VPs
Concerned
Departments
DG
Review Budget
(overall)
Presentation
to CFO
(Dry Run)
Presentation to
CEO
Presentation to
BOD
End
Incorporation of
BOD revision
Budget upload in
ERP
Incorporation of
DG revision
B
Presentation to
DG
10. Responsibilities – overheads – capex – head count – projections
10
Budget Element Activity
Relevant
Department
Reporting
to
Start End Status
Overheads Data Entry All CCs All EVPs 5-Jun 15-Jul
Capex Data Entry All CCs All EVPs 5-Jun 15-Jul
Head Count Data Entry All CCs All EVPs 5-Jun 15-Jul
Overheads Reviews by GMs All CCs All EVPs 20-Jul 15-Aug
Capex Reviews by GMs All CCs All EVPs 20-Jul 15-Aug
Head Count Reviews by GMs All CCs All EVPs 20-Jul 15-Aug
2017 Projection Submissions All CCs All EVPs 18-Aug 30-Aug
11. Responsibilities – Direct Operating Costs/Operating Revenues – CCO
11
Budget Element Activity Relevant Department Reporting to Start End Status
Draft Operating Plan Submissions Revenue Management CCO 12-Jul 12-Jul
Revenues – Scheduled Calculation Revenue Management CCO 12-Jul 10-Aug
Passenger Expenses Calculation Onboard Product CCO 12-Jul 10-Aug
Al-Fursan Expenses Calculation Al-Fursan CCO 12-Jul 10-Aug
Advertising & Promotion Calculation Advertising & Promotion CCO 12-Jul 10-Aug
Aircraft wet Lease Calculation Hajj & Umrah planning & Lease CCO 12-Jul 10-Aug
Sales Commission Calculation Passenger Sales CCO 12-Jul 10-Aug
Revenue - Ancillary and Incidental Calculation Commercial CCO 12-Jul 10-Aug
DCS charges Calculation Departure Control System CCO 12-Jul 10-Aug
Revenue from Cargo- Other Revenue Calculation Commercial CCO 12-Jul 10-Aug
Final Operating Plan - Sch. Svcs Submissions Network & Revenue Management CCO 10-Sep 10-Sep
Final Operating Plan - Rel. Svcs Submissions Hajj & Umrah Sch. Development CCO 10-Sep 10-Sep
12. Responsibilities – Direct Operating Costs – COO
12
Budget Element Activity Relevant Department Reporting to Start End Status
Element 1 Calculation Department 1 COO 12-Jul 10-Aug
Element 2 Calculation Department 2 COO 12-Jul 10-Aug
Element 3 Calculation Department 3 COO 12-Jul 10-Aug
Element 4 Calculation Department 4 COO 12-Jul 10-Aug
Element 5 Calculation Department 5 COO 12-Jul 10-Aug
Element 6 Calculation Department 6 COO 12-Jul 10-Aug
Element 7 Calculation Department 7 COO 12-Jul 10-Aug
Element 8 Calculation Department 8 COO 12-Jul 10-Aug
13. Responsibilities – Direct Operating Costs – Indirect Operating costs – Other costs – CEO, CFO &
CSO
13
Budget Element Activity Relevant Department Reporting to Start End Status
CFO
Equipment Lease Calculation Treasury CFO 12-Jul 10-Aug
Depreciation Calculation Asset Accounting CFO 03-Jul 10-Aug
Insurance Calculation Asset Accounting CFO 03-Jul 10-Aug
Taxation Calculation Taxation CFO 03-Jul 10-Aug
Financial Charges Calculation Treasury CFO 03-Jul 10-Aug
CEO Security Calculation Security CEO 03-Jul 10-Aug
CSO
Payroll & Related Calculation HR Planning CSO 03-Jul 10-Aug
Space Rentals Calculation Corporate Services CSO 03-Jul 10-Aug
Other Security Calculation Corporate services CSO 03-Jul 10-Aug
Vehicles lease Calculation Corporate services CSO 03-Jul 10-Aug
14. Responsibilities – Budget presentations / Revisions
14
Budget Element Activity Relevant Department Reporting to Start End Status
Presentation
for
Chief
Executive
Officer
Preparation All CCs All EVPs 10-Sep 17-Sep
Review with CFO All CCs under COO COO 18-Sep 18-Sep
Review with CFO All CCs under CCO CCO 19-Sep 19-Sep
Review with CFO All CCs under CSO CSO 20-Sep 20-Sep
Review with CFO All CCs under CIO CIO 21-Sep 21-Sep
Review with CFO All CCs under CFO CFO 24-Sep 24-Sep
Review with CFO All CCs under CEO CEO 25-Sep 25-Sep
Review with CFO All CCs under EVP SP&T EVP SP&T 25-Sep 25-Sep
Incorporation of changes All CCs All EVPs 27-Sep 5-Oct
Final review by CEO All CCs under COO COO 15-Oct 15-Oct
Final review by CEO All CCs under CCO CCO 16-Oct 16-Oct
Final review by CEO All CCs under CSO CSO 17-Oct 17-Oct
Final review by CEO All CCs under CIO CIO 18-Oct 18-Oct
Final review by CEO All CCs under CFO CFO 19-Oct 19-Oct
Final review by CEO All CCs under CEO CEO 22-Oct 22-Oct
Final review by CEO All CCs under EVP SP&T EVP SP&T 23-Oct 23-Oct
Presentation
for
DG
Preparation All CCs All EVPs 26-Oct 31-Oct
Discussion with CFO All CCs All EVPs 5-Nov 5-Nov
Discussion with CEO All CCs All EVPs 5-Nov 5-Nov
Submission to the DG All CCs All EVPs 7-Nov 7-Nov
Revisions advised by the DG All CCs All EVPs 8-Nov 15-Nov
Presentations to the
Board Presentation CEO Office CEO 26-Nov 26-Nov
