Invoice Review Invoice Review

Invoice Review Invoice Review Most airlines have a limited man-power in the Powerplant Engineering Group. Their engineers are typically focused in maintaining the fleet of engines in operation, limiting the available time for auditing the invoices generated during the repair of the engines. During the past years, GTS has specialized in the Invoice Review activity and its team of qualified professionals is prepared to provide the necessary support for the process of reviewing these invoices. GTS Proprietary Information Invoice Review Invoice Review The proposal is very simple: After receiving the basic Shop Visit documentation, GTS will perform a detailed analysis of the invoice to identify the opportunities of obtaining credits from both the Repair Station and from the manufacturer of the engine. The documentation to be provided by the operator consists basically of: - Commercial Invoice - Maintenance Agreement between the operator and the Repair Station - Workscope (Statement of Work) - Shop Visit Report - List of replaced parts - List of scrapped parts GTS Proprietary Information Invoice Review Invoice Review The follow up of the credit requests is performed by GTS, which will issue reports on a timely basis, providing to the customer full visibility of the process. GTS’s charging methodology is also very simple and advantageous for the customers: GTS performs the Invoice Reviews FREE OF CHARGE and a commission is awarded over the value actually recovered by the customer. The credits received are usually applied on future engine invoices or can be directly credited to the airline’s accounts. Invoice Reviews Have Generated Cost Reductions of up to 6% Invoice Reviews Have Generated Cost Reductions of up to 6% GTS Proprietary Information Invoice Review Invoice Review GTS has successfully demonstrated to Customers, the advantages of having qualified professionals performing the Invoice Reviews. Mistakes not readily identified in the Invoices, which may incur in potential credits from the Repair Stations, have a significant impact over the operational costs of the airline. The most common areas for errors are: - Services being charged outside a pre-agreed workscope - Price of the new parts different from the value charged by the manufacturers - Costs of repair higher than the price of new parts - Fees charged above the contractual values - Contract terms not applied correctly - Warranty credits not applied - Mistakes in general calculations GTS Proprietary Information Invoice Review Invoice Review In addition to the obvious financial advantages, the process of Invoice Review contributes to other improvement opportunities like: - Improvement of the quality of the documentation supplied by the shops - Complete revision of the engine repair process, where it is possible to identify opportunities for cost reduction - Better relationship with the shops - and most importantly, reduces the number of errors on future invoices and consequently, the reduction of required cash flow GTS Proprietary Information Invoice Review Invoice Review For each Invoice Review, GTS issues an Invoice Summary which shows the basic cost distribution for the shop visit. This is an helpful tool for the airline in order to identify the main areas of concern during the workscope preparation as well as identifying material content. INVOICE BREAKDOWN (EXCEPT LLP) COP 5,158.00 0% EXCHANGE 13,557.34 1% 800,000.00 INVOICE BREAKDOWN X MODULE REPAIR 164,476.20 8% LABOR 111,949.20 5% 700,000.00 USED 160,706.00 8% Cost (USD) MISC 146,742.12 7% 600,000.00 LLP 500,000.00 400,000.00 REPAIR NEW MISC USED 300,000.00 200,000.00 LABOR COP NEW 1,446,159.19 71% 100,000.00 0.00 21X / 21X / 22X / 22X / 23X / 31X / 41X / 52X / 53X / 54X / 54X / 55X / 55X / 56X / 56X / ACC ENG HM LLP HM LLP MM LM LM MM HM HM LLP HM LLP HM LLP M odule / Workscope GTS Proprietary Information Invoice Review Invoice Review IT IS SIMPLE AND COST FREE GTS Proprietary Information