How much does it cost to fly a fighter-bomber for one hour?
Spain's Air Force manages activity costs for more precise, efficient budget allocation
Financial management in the public sector usually means keeping expenses within allocated budget. Agencies receive a set amount of funding to meet certain targets, and their ability to exercise control is limited to ensuring the efficient use of resources.
How much does it cost to train a pilot?
The Air Force also needed to know how much it costs to fly a fighter-bomber for an hour, and how much it costs per hour to train the pilots who fly them. That way, it could seek reimbursement from pilots who transfer to commercial aviation before fulfilling their obligation to the Air Force.
"Thanks to SAS® Activity-Based Management, we can know the real cost of all of our activities, from the hourly flying cost of a fighter-bomber to the cost of training a fighter pilot," says Wing Commander Alfredo Medina. "This allows the Air Force to allocate its budget more optimally to facilitate the analysis of operations costs in each area."
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Spanish Air Force
To precisely calculate the cost of each activity and service performed.
SAS® Activity-Based Management
The Spanish Air Force can understand all the elements involved in an activity and identify its real costs, resulting in better budget allocation.
“"Thanks to the SAS® Activity-Based Management solution, we can know the real cost of all of our activities, from the hourly flying cost of a fighter-bomber to the cost of training a fighter pilot. This allows the Air Force to allocate its budget more optimally to facilitate the analysis of operations costs in each area."”
Wing Commander of the Economic Affairs Department of the Air Force