Malaysia Airlines has entered into a 10-year contract with SITA for its Horizon portfolio of passenger management solutions.

Published: 03 Oct 2006

Malaysia Airlines has entered into a 10-year contract with SITA for its Horizon portfolio of passenger management solutions.

The solutions will play a key role in achieving revenue enhancement and cost savings of more than $27 million (RM 100million) yearly as well as the success of the airline’s Business Turnaround Plan (BTP), according to SITA.

Malaysia Airlines’ managing director and chief executive officer Idris Jala said the strategic partnership with SITA will ensure long-term health and prosperity of the airline through business transformation and the Horizon portfolio will allow the airline to replace its existing reservations and inventory management system within three to five years.

The SITA IT software enables Malaysia Airlines to develop a Passenger Service System (PSS) for the upgrade of its frontline operational capability and business processes for an investment of over RM300 million (approx. $100 million) spread over 10 years.

These solutions will keep the national carrier abreast of the industry best practices, focused on five core business processes, namely ticketing, fares management, revenue integrity, distribution and departure controls, according to SITA.

The PSS will also replace core components of its existing KOMMAS reservations and inventory management system within three to five years.

The PSS will automate validation of business processes and rules to optimize yield and load.

Jala said, “Using SITA’s e-commerce platform we will be able to achieve significant reductions in distribution costs while at the same time making it much easier for the traveling public to do business with us through greatly improved online booking capability. We will also meet IATA’s deadline of December 2007 for the introduction of e-ticketing.”