AI chooses SITA to integrate, run ticketing system

Air India’s ticketing system is to finally be integrated. It has hired SITA, the company which provides ticketing services to 140 airlines across the world, to first integrate the ticketing systems of erstwhile Air India and Indian Airlines, and then operate it.

Both, AI and SITA executives confirmed the development. “SITA will first integrate our systems in 300 working days and then operate our system for 10 years at a fee of Rs 800 crore,” said an AI official who did not want to be identified.

Long after Indian Airlines was merged into AI, the international and domestic services of the merged carrier continue to operate under different codes, AI and IC. The carriers also have distinct information technology platforms, powered by Unisys (AI) and IBM (IA).

A uniform passenger scheduling system that will give AI a single code is a must for its entry into Star Alliance, the world’s largest airline alliance, with 26 members. Air India is supposed to join Star Alliance by December this year. This is part of the post-merger process in which AI was to integrate product delivery, passenger handling and sales and marketing functions.

AI had earlier invited global tenders for providing, implementing and maintaining a uniform ticketing system for the airline on a turnkey basis, but it ran into a controversy.

AI is reeling under huge losses and the Union government had sanctioned Rs 800 crore of equity infusion in 2009-10, with another Rs 1,200 crore proposed for 2010-11. The airline also has various cost-cutting plans, including a 15-17 per cent pay cut.