Air India's PSS switch to improve customer experience, augment revenue

Benefit include efficiency in re-issuance of tickets due to date change or rerouting, smoother bookings using frequent flyer loyalty points

Air India’s switch to Amadeus passenger service system (PSS) from Wednesday is expected to improve passenger experience and thus bring additional revenue opportunities to the airline.

A PSS covers a wide range of functions including flight scheduling, ticket reservation, e-commerce, loyalty programme and departure control.

Amadeus was selected as Air India’s PSS partner last year and the tender process was upheld by the Delhi High Court.

Air India declined to comment on benefits and efficiencies of the new system. However, in its advertisements said the switch to the new PSS will offer a smoother booking experience on its website and mobile app.

One such benefit may be seen in the re-issuance of tickets either due to date change or rerouting as the new system can automatically calculate fares. The new system may also make it easier for frequent flyers to book tickets using loyalty points. Further Amadeus’s PSS is also expected to increase ancillary revenue opportunities for the airline.

An airline source said that Air India’s current PSS developed by SITA is a legacy product while Amadeus PSS has modern interface, better functionalities and a faster response time. A PSS offers a bouquet of solutions and ultimately it is upto an airline to choose what it wants, he added.

 Air India, which is now owned by Tatas, has renegotiated offer terms with Amadeus which originally quoted Rs 1957 crore for the PSS contract. Air India has hired Amadeus’s former regional vice president Nanda Kumar Pillai as an advisor. It also roped in a UK-based consultant to advise on renegotiation and other aspects.

Tata-owned Vistara also uses Amadeus PSS and renewed its partnership with the firm in 2019.

In an email Amadeus said its PSS provides efficient reservation solutions for airlines and allows them to offer new payment capabilities to customers. It can also offer real time access to data insights.

“The Altea PSS adapts to airlines’ evolving business models and expansion into new markets, services and partnerships. Through Amadeus, airlines can collaborate with the airline alliance in which they participate, codeshare and work with other strategic partners to maximize sales and provide excellent service in the traveller’s preferred channel,” Amadeus said.

 Last March Air India invited bids for a new seven year PSS contract as the existing agreement with SITA was due to end in 2022. Incidentally SITA has exited this business too.

While Air India chose Amadeus as its preferred partner, Sabre moved the Delhi High Court alleging favouritism in the tender process. Sabre also said acquiring its product would save Air India Rs 900 crore. The court however refused to set aside Air India’s decision.