Return on investment
What is the leak worth to you?
Three numbers you already know are enough to size the opportunity. Move them and watch the net return after our contingency, and the run-rate if the engagement repeats.
Fuel, landing, handling, navigation and related charges — the pool the audit draws on.
The share of that spend you believe is billed above what was contracted. One percent is the industry benchmark for direct operating cost.
Not every finding collects. This is the share of what we evidence that a supplier ends up refunding or crediting.
Run rate. Repeat this across four periods and the net return is on the order of $4.1M a year, at the same spend and the same error rate — before any correction has been made to the billing itself.
Illustrative only. The actual figure is produced by the audit, from your own contracts and invoices, and not from this model.
No downside to the model
The fee only exists where a recovery exists, so the modelled net is what the airline keeps. There is no scenario in this calculator where the client pays more than they receive.
Why the error rate matters most
Exposure moves roughly linearly with the billed-in-error rate, so a modest change in your assumption moves the answer a long way. It is the number worth arguing about before the audit, not after.
Then correct the cause
A recovery fixes the period audited. The run-rate compounds only if the billing is corrected at source — which is the difference between one refund and a permanent improvement.