Azerbaijan Airlines (AZAL) is a national flag carrier. It brings together six business units, including an Airline, Airports, and specialized divisions such as AZANS (air traffic control) and AZALOIL (fuel and lubricants), Crew Training Center, and Corporate Office.
“We are committed to positioning ourselves as a strategic hub between Europe and Asia by connecting with other international airlines. This is not just about generating revenue through flights but also capitalizing on our strategic location in the region, all while minimizing our environmental impact,” shares Zaur Dibirov, Director of Finance and Accounting at Azerbaijan Airlines.
Scattered, inaccessible data
In the airline industry, timely decision-making is crucial. However, with six business units and over five disparate financial tools, Azerbaijan Airlines struggled with fragmented data and operations. “We stored information in spreadsheets, and long-serving employees often carried valuable information in their memories or notebooks,” explains Dibirov. “This was risky because if someone left the company, we faced the threat of losing crucial information. What’s more, I couldn’t provide our management with accurate and timely reporting and insightful analytics. Evaluating our cash position and forecasting was difficult. This delayed decision-making, which in turn resulted in losses from unprofitable routes and other inefficiencies.”
Another critical challenge was limited access to data. “Only a certain number of accountants could access our legacy system at the same time,” recalls Dibirov. "The legacy software was basically a general ledger. It lacked many functionalities like the ability to track agreements and payments. We were unable to properly and timely track what we owed or what was owed to us, leading to delays in payments—critical issues in the airline industry."
Unified data and processes
After careful deliberation, Azerbaijan Airlines decided to centralize its efforts in a single enterprise resource planning (ERP) solution. It chose Microsoft Dynamics 365 Finance. “What appealed to me about Dynamics 365 was its flexibility in customization and integration,” recalls Dibirov. Azerbaijan Airlines reached out to Novum Information Technology for help with the implementation. “Novum is a local company, and they understood the specific requirements of our country, which was crucial for localization, while keeping data security and integrity,” adds Dibirov. “Some companies often impose rigid frameworks during ERP implementation projects, and they often fail to meet all the requirements.”
With help from its partners, Azerbaijan Airlines replaced its over five systems with a unified platform. It also deployed Azure Data Warehouse to consolidate its data efficiently. It required an overhaul of the company structure, followed by a simultaneous restructuring of the Finance Department. “Over 80 finance employees have been reskilled and have successfully completed the change management and adoption plan for the new system rollout,” recalls Dibirov. “Other vendor companies estimated that it would take us years to implement a new ERP solution. They doubted that we could achieve this transition within such a short time frame.” But with help from Microsoft and Novum, and thanks to a strong commitment from its executives, Azerbaijan Airlines completed the project in just 11 months.
The journey wasn’t without its challenges. As a government entity, AZAL was in a transformation stage. “Change often sets off a chain reaction of further changes and the ERP project was part of it,” Dibirov says. “We were racing against the clock, trying to meet deadlines. Having local partners who understood the same pressures, anxieties, and challenges was extremely valuable. We also frequently changed our requirements during the first stage. Though we gave Novum some headaches, they adapted to our changes, which was crucial to our success.”
Better data, better decisions
Since the migration, everyone in the company has had seamless access to real-time information and Power BI reports, and they can view it from any device or location. “The timely availability of data has changed the way we look at the company and its strategy,” explains Dibirov. “Before, our monthly meetings were delayed because we couldn’t generate reports on time. Now, we hold regular monthly management meetings to evaluate performance. This has prompted us to establish a cost optimization committee, and we anticipate seeing tangible results by the end of this year.” AZAL also provided user profiles in Dynamics 365 for its main two stakeholders in Government, letting them have direct access to the main source, get internal reports by reducing manual tasks, and bring more transparency.
The quality and accuracy of data and insights have also improved, giving Azerbaijan Airlines a comprehensive overview of its operations for continuous improvement and enabling it to make forecasts. The new system has improved data transparency.
Faster operations and financial reporting
After migrating to Dynamics 365, Azerbaijan Airlines could focus on analytics and data quality instead of manual data processing tasks, saving time. With such improvements, financial reporting also takes less time. “Instead of consolidating data from various sources, we can quickly run and send reports to our managers,” notes Dibirov. “For example, it used to take us 15 days to finalize monthly financial statements, and we can now do it in eight working days. We can also perform reconciliations—i.e. compare our internal financial record with our bank statements—every day instead of at the end of every month.” As a result, the company can quickly identify discrepancies or errors, improve cash flow management, and avoid the accumulation of issues. With semi-automated reconciliations, employees save 60% of their time. They are working much more efficiently.
It used to take us 15 days to finalize monthly financial statements, and we can now do it in eight working days. We can also perform reconciliations—i.e. compare our internal financial record with our bank statements—every day instead of at the end of every month.
Zaur Dibirov, Director of Finance and Accounting, Azerbaijan Airlines
The company has also sped up day-to-day operations. After integrating bank payments, Azerbaijan Airlines can process payments with a single click instead of printing out papers, getting signatures, and physically going to the bank. This saves its employees 70% of their time.
Happy, empowered staff
With fewer manual tasks, more visibility, and a reliable, cloud-based system, finance staff feel calmer and happier. “Our employees are no longer tied to their desks in the office, which has made them more flexible and comfortable. Stress levels have decreased significantly because they now feel more confident in their work,” shares Dibirov. “Company knowledge no longer relies on individual memory or scattered paper documents. Everything is documented, backed up, and stored securely. When someone leaves the company, the impact on operations is minimal.”
Our employees are no longer tied to their desks in the office, which has made them more flexible and comfortable. Stress levels have decreased significantly because they now feel more confident in their work.
Zaur Dibirov, Director of Finance and Accounting, Azerbaijan Airlines
Looking back on the journey, Dibirov feels proud of his strong-willed team and a successful transition. “The finance team feels very happy and confident because we achieved this together and learned many lessons along the way. And I am very proud to be a part of this unique experience in the country. Being involved in such a pivotal transition has been both challenging and rewarding, and I am honored to contribute to this significant chapter in AZAL, our national flag carrier,” he concludes.
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