ATW Daily News

SITA: Airline IT investment 'to reach new low' owing to recession

Friday July 3, 2009

SITA said its "2009 Airline IT Trends Survey," released this week, revealed that carrier investment in information technology "is set to reach a new low this year as aircraft operators cope with unprecedented financial losses." According to the survey, IT and telecommunications spending as a percentage of airline revenue is forecast to be just 1.7% in 2009, the lowest level since 2002. "Many airlines are in survival mode," SITA said, explaining that "72% of survey respondents intend to renegotiate IT supplier contracts and 70% will invest in solutions that lower overall enterprise costs. Most airlines have already put in place measures such as rationalization of IT suppliers, IT infrastructure consolidation, reduced head count and outsourcing."

SITA Chairman and British Airways CIO Paul Colby said, "The drop in IT investment by airlines is a direct response to the $80 billion in revenue that is expected to disappear this year due to falling passenger demand in our industry." The "Airline IT Trends Survey" is co-sponsored by Airline Business.

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