AI expects 30pc sales from online with code integration

Expected to improve ailing airline's cash-flow by 15 per cent.

PTI | March 31, 2011



The national carrier Air India expects its newly integrated passenger services system (PSS) to fetch 30 per cent of ticket sales, which would help the ailing airline to improve its cash-flow by 15 per cent.

"We expect our web booking to bring us upto 30 per cent of sales over the next 18-24 months. In revenue terms, this will translate into a 15 per cent increase," Air India Chairman and Managing Director Arvind Jadhav said here today.

Currently over 80 per cent of the airline's ticketing is handled by agents who corner five percent of the ticket price as commission now against seven percent earlier.

Together with reduction in commission outgo, the airline expects its overall revenue to go up considerably due to operational and system integration.

The airline is also expecting to see a major improvement in its load factor with the code integration.

The implementation of the new single code is part of the ailing flag carrier's turnaround strategy, Jadhav said, adding the airline is working on to integrate its cargo business, which is currently being run on two different IT platforms now, within the next six months.

AI is struggling with a mammoth Rs 40,000 crore debt out of which Rs 18,000 crore is working capital loan from various bank, which is being recast now.

Leading global air transport communications and IT solutions provider SITA has implemented the new PSS in a record time of 293 days. SITA had last year been awarded the contract for providing the common IT platform to the merged entities by Air India. .

The Geneva-based SITA is a not-for-profit cooperative of 500 airlines around the globe, including Air India, which owns 2.9 percent in the company, and the airline chairman Jadhav is on the SITA board.

The hosted service contract for 10 years would see the cash-strapped airline plonking out USD 193 million to SITA over the contract tenor. The initial payout is around USD 20 million, out of which UD 5 million has already been made, said Air India executive director for IT, Anil Kumar Sodhi.

In addition to the core Horizon PSS Suite, SITA also implemented online booking engine, departure control system, check-in and automated boarding control, baggage reconciliation system, new automated frequent flyer programme and a new customer relationship management among others.

With the introduction of the common code (AI) for both erstwhile Indian Airlines and AI from last month, the airline would be in position to reach out to the demanding young fliers.

"Accordingly, we will use all social media platforms such as the Facebook, Twitter and Mobile Apps among others to woo the discerning young frequent fliers," Jadhav said.
 

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