The document discusses airline budgeting. It explains that a budget is a written plan of estimated future income and expenses over a period. For airlines, budgets differ slightly from other industries as numbers are statistics, percentages, and available resources. The document focuses on two major budgeting types - zero-based budgeting and activity-based cost analysis. Zero-based budgeting requires justification of all expenditures rather than just increases from the previous year. Activity-based cost analysis identifies the costs of individual activities and cost objects. The document provides advice on effective airline budgeting practices.

1. Airline BudgetingAuthorSam IssacAirline Management ExpertEmail: sam.kalathra@gmail.com(c) Sam Issac. Email: sam.kalathra@gmail.com

2. What is budgeting?A written plan or estimate of future income and expenses of an activity covering a definite time period.The word budget taken from the old French word bougette, means purse…“For which of you intending to build a tower, sitteth not down first and counteth the cost whether he has sufficient to finish it” Holy Bible- Luke 14 : 28(c) Sam Issac. Email: sam.kalathra@gmail.com

3. There are many types of budgeting practices available, however I wish to explain 2 major types of budgets mostly in use with AirlinesTypes of budgets(c) Sam Issac. Email: sam.kalathra@gmail.com

4. How Airline budget differsAirline budget is slightly differs from the budgets of other business types. Basically the numbers are purely statistics, percentages and available resources.Airline’s production units are Aircraft & Routes.(c) Sam Issac. Email: sam.kalathra@gmail.com

5. Zero based budgeting in airline (zbb)Zero-based budgeting is a technique of planning and decision-making which reverses the working process of traditional budgeting. In traditional incremental budgeting, departmental managers justify only increases over the previous year budget and what has been already spent is automatically sanctioned. By contrast, in zero-based budgeting, every department function is reviewed comprehensively and all expenditures must be approved, rather than only increases. No reference is made to the previous level of expenditure. Zero-based budgeting requires the budget request be justified in complete detail by each division manager starting from the zero-base. The zero-base is indifferent to whether the total budget is increasing or decreasing. (c) Sam Issac. Email: sam.kalathra@gmail.com

6. Advantages of zbb in airline(c) Sam Issac. Email: sam.kalathra@gmail.com

7. base of airline budget process(c) Sam Issac. Email: sam.kalathra@gmail.com

8. Budget Check list!Publish the projected Annual Operating plan with all required details

9. Publish customized Templates to the user departments

10. Publish the Budget Approval process

11. Publish budget guidelines and policies

12. Common assumptions to be used across the board

13. Projected FOREX rates

14. Timelines(c) Sam Issac. Email: sam.kalathra@gmail.com

15. Airline budget approachIn an Airline Set up, we can initiate budget process in two lines, Centralized & Departmental. Below are the examples of certain cost elements can be considered in each group.(c) Sam Issac. Email: sam.kalathra@gmail.com

16. Process of Activity based cost (Abc) analysis(c) Sam Issac. Email: sam.kalathra@gmail.com

17. Some Examples of cost reduction on ABC !!(c) Sam Issac. Email: sam.kalathra@gmail.com