Asian carriers to spend more on IT next year

Airlines to spend 1.8 % of their revenue on IT : SITA

PTI | June 25, 2010



Buoyed by the improved scenario in the aviation sector, about 75 per cent of Asian carriers, including many from India, would increase their spending on information technology next year in order to provide better passenger facilities.

According to a new study, 2010 Airline IT Trends conducted by SITA and released here during SITA Air Transport Summit, the airlines would be spending about 1.8 per cent of their revenue and the Asian carriers are leading the charge of increase.

The numbers of airlines stating an expected IT budget increase in highly developed markets such as Europe and North America are below the global averages.

"75 per cent of the responding carriers in this region are confident that IT spending will increase further next year.

"After year on year declines, overall airline IT budgets in 2010 have stabilised, even showing a slight increase.

"The operating spend this year is an average 1.8 per cent of revenue while capital spend is 1.4 per cent, meaning no major change from last year," said Jurgen Kolle, senior Director Portfolio Marketing SITA.

Kolle said that majority of Indian carriers have also expressed interest in increasing their IT budget.

"This shows the maturity of the Indian carriers.

Begin a growing market, this will help them grow their business and sustain," he added.

Senior IT professionals of 129 carriers, out of 200, responded to this year's survey, of which 14 per cent were classified as low cost carriers, 81 per cent full service carriers and five per cent were charter carriers.

Airlines, carrying over one billion passengers annually, took part in this year's 12th annual SITA/Airline Business Airline IT Trends Survey which indicated that the worst may be over for an industry which sustained record losses over the last two years.

Globally about 56 per cent of responding airlines expect an increase in IT spend next year with only 10 per cent expecting a decrease in 2011.

Interestingly, a significant number of small carriers were among the 45 per cent who reported an increase in their IT budgets this year compared to last year.

At the same time, about 50 per cent of the European airlines have said that their budget would decrease this year.

"The stabilising budgets and increasing business confidence translates into a change in spending behaviour for airlines away from short-term tactical remedies needed in 2009 and a return towards long-term strategic thinking.

 

Comments

 

Other News

How to promote local participation in knowledge sharing

Knowledge is a powerful weapon to help people and improve their lives. Knowledge provides the tools to understand society, solve problems, and empower people to overcome challenges and experience personal growth. Limited sources were available to attain information on the events in and arou

‘The Civil Servant and Super Cop: Modesty, Security and the State in Punjab’

Punjabi Centuries: Tracing Histories of Punjab Edited by Anshu Malhotra Orient BlackSwan, 404 pages, Rs. 2,150

What really happened in ‘The Scam That Shook a Nation’?

The Scam That Shook a Nation By Prakash Patra and Rasheed Kidwai HarperCollins, 276 pages, Rs 399 The 1970s were a

Report of India’s G20 Task Force on Digital Public Infrastructure released

The final ‘Report of India’s G20 Task Force on Digital Public Infrastructure’ by ‘India’s G20 Task Force on Digital Public Infrastructure for Economic Transformation, Financial Inclusion and Development’ was released in New Delhi on Monday. The Task Force was led by the

How the Great War of Mahabharata was actually a world war

Mahabharata: A World War By Gaurang Damani Sanganak Prakashan, 317 pages, Rs 300 Gaurang Damani, a Mumbai-based el

Budget expectations, from job creation to tax reforms…

With the return of the NDA to power in the recently concluded Lok Sabha elections, all eyes are now on finance minister Nirmala Sitharaman’s full budget for the FY 2024-25. The interim budget presented in February was a typical vote-on-accounts, allowing the outgoing government to manage expenses in

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter