Aviation industry looks to IT to save costs

Global - IT solutions should be deployed to aid airlines struggling against high fuel costs, says International Air Transport Association (IATA) director general and CEO Giovanni Bisignani.

Bisignani was speaking at the SITA Air Transport IT Summit in Brussels last week, where he stressed the importance of adopting effective IT systems to help airlines garner savings in the face of rising fuel costs.

"IT must deliver solutions to drive down costs, improve passenger convenience and provide enhanced possibilities to maximise revenues," Bisignani said. "The industry fuel crisis that has plunged airlines back into the red [so] achieving these goals is critical to survival."

Earlier this month, the IATA implemented 100% e-ticketing, eliminating manpower to process tickets as well as saving on the costs of purchasing paper.

"Alone, [e-ticketing] will save us US$3 billion," Bisignani said. "This IT revolution is well on the way to saving airlines US$6.5 billion annually."

Going forward, Bisignani urges industry players to scrutinise other areas to which it can deploy IT solutions, including responding to passenger demands for more self-service options throughout the travel process.

"Everything is changing with the high price of oil. With fuel accounting for 34% of industry costs, airlines are feeling the impact more than most," he said. "Cost savings are crucial in every corner of the business, but there is not much low-hanging fruit left. Critical decisions on everything from aircraft allocation based on cost, capacity and demand to making best use of new labour opportunities are needed.

"Those with state-of-the-art route planning systems fed with the best available market data will have a clear advantage. In the uncharted waters of oil at US$135, two things are certain. The imperative is to deliver more for less. And effective IT is essential," said Bisignani.