IT investment takes tumble as airlines focus on survival

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2/07/2009 1:21:30 PM

IT investment takes tumble as airlines focus on survival

Airline investment in IT will hit a new low this year as carriers react to an estimated $80 billion fall in revenue, a survey by air transport communication and IT firm SITA has revealed.

The survey of 200 senior IT personnel found 72 per cent intend to renegotiate their IT supplier contracts this year, with 70 per cent saying they will look for cheaper solutions. Spend on IT and telecommunications as a percentage is expected be just 1.7 per cent, the lowest level since 2002.

“For the first time in several years, there will be a year-on-year decline in IT spend. The focus everywhere is on doing even more with even less,” SITA chairman Paul Coby said.

Airlines are also keen to add more functionality to their websites by the end of 2010, with 44 per cent of respondents planning to offer ‘change/cancel/rebook’ facilities online.

2 July 2009

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