Asian carriers to spend more on IT next year

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Sarvottamjee M Jaipuriar Brussels, Jun 24 (PTI) Buoyed by the improved scenario in the aviation sector, about 75 per cent of Asian carriers, including many from India, would increase their spending on information technology next year in order to provide better passenger facilities. According to a new study, 2010 Airline IT Trends conducted by SITA and released here during SITA Air Transport Summit, the airlines would be spending about 1.8 per cent of their revenue and the Asian carriers are leading the charge of increase. The numbers of airlines stating an expected IT budget increase in highly developed markets such as Europe and North America are below the global averages. "75 per cent of the responding carriers in this region are confident that IT spending will increase further next year. "After year on year declines, overall airline IT budgets in 2010 have stabilised, even showing a slight increase. "The operating spend this year is an average 1.8 per cent of revenue while capital spend is 1.4 per cent, meaning no major change from last year," said Jurgen Kolle, senior Director Portfolio Marketing SITA. Kolle said that majority of Indian carriers have also expressed interest in increasing their IT budget. "This shows the maturity of the Indian carriers. Begin a growing market, this will help them grow their business and sustain," he added. Senior IT professionals of 129 carriers, out of 200, responded to this year''s survey, of which 14 per cent were classified as low cost carriers, 81 per cent full service carriers and five per cent were charter carriers. Airlines, carrying over one billion passengers annually, took part in this year''s 12th annual SITA/Airline Business Airline IT Trends Survey which indicated that the worst may be over for an industry which sustained record losses over the last two years. Globally about 56 per cent of responding airlines expect an increase in IT spend next year with only 10 per cent expecting a decrease in 2011. Interestingly, a significant number of small carriers were among the 45 per cent who reported an increase in their IT budgets this year compared to last year. At the same time, about 50 per cent of the European airlines have said that their budget would decrease this year. "The stabilising budgets and increasing business confidence translates into a change in spending behaviour for airlines away from short-term tactical remedies needed in 2009 and a return towards long-term strategic thinking. (MORE) PTI SMJ.

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