Case Study: Spain's Air Force achieves precise activity costing and optimized budget allocation with SAS Cost and Profitability Management

Spain's Air Force manages activity costs for more precise, efficient budget allocation

Spain’s Air Force needed a reliable way to quantify the true cost of its operations after rapid modernization—everything from the hourly flying cost of a fighter‑bomber to the cost of training a pilot. Precise activity costing was also required to invoice third parties for services (firefighting, training, official travel), recover training costs when pilots left for commercial aviation, and allocate limited budgets more efficiently.

The Economic Affairs Department implemented SAS Cost and Profitability Management, adapting cost‑center and product concepts into military “activity centers” (flying hours, training hours, transport, etc.). Rolled out in three phases—allocating expenses to cost centers, mapping costs to activities/resources, then assigning activity costs to weapon systems—the solution delivered full cost accounting by unit, enabling accurate pricing, reimbursement and more optimal budget allocation.

Spain's Air Force

Alfredo Medina

Wing Commander of the Economic Affairs Department of the Air Force