Malaysia Airlines adopts SITA reservations system as turnaround enters new phase

Date: 1 December 2008
Location: Geneva


SITA's Horizon helps Malaysia reduce annual costs by $140 million

SITA, the aviation IT specialist, and Malaysia Airlines today announced the replacement of the 14 million passenger airline's in-house reservations system as part of a $130 million IT-driven turnaround programme which has seen the Asian carrier return to profitability with annual costs slashed by over $140 million.

Three years after taking on the role of Managing Director and CEO, Malaysia Airlines, Idris Jala, today said: "SITA's Horizon portfolio has been crucial to our business turnaround and that is why we are now retiring our in-house reservations system and implementing SITA Reservations and Inventory. This will provide us with robust core passenger management services to meet our future functional and business growth requirements.

"SITA delivered a new Passenger Services System for the airline in record time including one of the fastest e-ticketing implementations ever seen by IATA. It was done in 11 months resulting in $6 savings for each ticket sold."

Francesco Violante, SITA CEO, said: "Malaysia Airlines deserves enormous credit for seizing the opportunity presented by smart IT solutions to turn around its performance in a relatively short space of time. We are proud to have been an active partner in this process.

"Malaysia Airlines has said that they are counting on us to help meet the challenges which loom ahead in the air transport industry. Our Horizon offering has already made a considerable impact and we are looking forward to a successful implementation of the next phase."

In a contract worth more than $130 million over ten years, SITA has so far implemented E-Ticketing and an upgraded Departure Control System which allows Malaysia Airlines to offer new self-service options to passengers including kiosk and web check-in.

The airline's fares strategy has also been re-engineered including fares workflow, competitive monitoring and effective distribution, together with the provision of an easy-to-use internet booking engine for the convenience of its 14 million passengers. On-line booking has more than doubled due to these improvements.

SITA also helped to eliminate revenue leakage through an integrity and protection programme which prevented the waste of 200,000 segments in the first half of 2008 by ensuring authentication of every booking.

In a case study which is now available at www.sita.aero, Idris Jala is quoted: "SITA's partnership approach with us - focusing on business goals and delivery success, rather than simply trying to sell us existing solutions - has been greatly appreciated by all of us at Malaysia Airlines. SITA really understood our business turnaround plan, and continues to work hard in delivering the most appropriate solutions to drive our business forward - profitably."

*The case study results will be presented at the IATA Commercial Strategy Symposium in Las Vegas on December 2 by Dato Rashid Khan, Commercial Director, Malaysia Airlines, and Brian Cook, SITA Vice President, Airline and Passenger Solutions Line.

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