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September 12th, 2016

‘Privilege Style’ Audit

Some delays in flights schedule are caused by the pilots’ strike which are happening consistently in a few airlines as an ongoing labor dispute. Pilots’ strikes result in the flight delays and cancellations, so airline managements have to make policy revisions.  As the consequence of the operational constraints, a few airlines decided to use “Privilege Style” (wet lease) flying and operating flights between international and domestic destinations.

‘Wet’ lease means that the lessor provides both the aircraft and the crew. However, ‘Dry’ lease means leasing an aircraft without a crew, and the lessee is responsible for operational control of the aircraft and hiring of the flight crew.

Implementation of “Privilege Style” flights have had a major impact on internal auditing process. For instance, a customer who wishes to change the date of the flight to a date when the flight will be operated by national airline will not be charged a change fee; while a customer who wishes to cancel “Privilege Style” flight will receive a full refund as well.

A change of the algorithm is mandatory to implement new “Privilege Style” exchange and cancellation fees exemptions. All changes of the flights which were scheduled to fly “Privilege Style” should be taken into consideration so that travel agents will not receive invalid debit memos.

Posted by: Yana Nibelitsky