Air India is set for a tech upgrade by moving to a new service provider, Amadeus, for its reservations system. The carrier is going through a series of changes under the Tatas, including a system overhaul to save money and improve efficiency.
The switch
Air India will move to Amadeus passenger service system (PSS) from June 1st in an attempt to improve the process of its flight scheduling, ticket reservation, e-commerce, loyalty program, and departure control. The carrier hopes that the switch will offer a smoother booking experience on its website and mobile app.
An airline source discussed the difference between AI present system and Amadeus with the Business Standard, saying that the current PSS developed by SITA is a legacy product while Amadeus PSS has a modern interface, better functionalities, and a faster response time.
Last year, Air India invited bids for a new seven-year PSS contract in March as its existing agreement with SITA is due to end in June this year. But Sabre approached the court in June after Air India selected Amadeus for the contract and accused the airline of favoritism in the selection process. The court, however, ruled in favor of AI's decision to go for Amadeus.
Tech push
The Tata Group also prefers Amadeus for its services, with Vistara also using Amadeus PSS and renewing its partnership with the firm in 2019. The Tatas have long-term plans to make Air India financially fit, improve aircraft conditions, bring in a new fleet and make it a technologically advanced airline according to global standards.
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According to an airline official who confided with the Economic Times, the move is expected to help the airline save an estimated ₹900 crore ($116 million) over the next few years. Amadeus will give Air India a single platform of advanced technology for booking and leveraging the platform's leading position in India and its agency partner network.
An analyst also shared his thoughts on the matter with ET, saying,
"Air India did not have a tech-led analysis, pricing and booking process. It was a very manual process that impacted the commercial performance in an industry where pricing is dynamic. Air India will have to put a lot of focus here through technology."
About Amadeus
Amadeus is a leading travel technology company offering solutions that help airlines, airports, hotels, and railways, among others, to run their operations and improve the travel experience. Headquartered in Madrid, Amadeus has been in the travel industry for more than 30 years and has partnered up with major airlines around the world.
Recently, India's soon-to-be-launched airline Akasa Air gave the reservation and retailing system responsibility to Minneapolis-based Navitaire, an Amadeus company.
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Source: Business Standard, The Economic times