Months after formally taking over administrative control of formerly state-owned Air India, the Tata Group is now ready with a tech upgrade plan for the biggest Indian air carrier.
As per the new tech upgrade plan, Air India chairman N Chandrasekaran looks to bring business accountability to the airline to save costs and improve efficiency.
With the new system in place, Air India’s passenger services system (PSS) which includes a wide range of functions, including flight schedules, ticket reservations, eCommerce, and loyalty, has been moved to a leading travel technology company Amadeus as the existing agreement with SITA ends in June.
The move is expected to help the beleaguered airline log in savings of an estimated ₹900 crore over the next few years. The Tata Group has also prioritised plans to make Air India financially fit, upgrade aircraft, bring in a new fleet, and make it the most technologically advanced airline globally.
The airline would further see an organisational redesign, and will “require a huge transformation” in this regard, the Tata Sons chairman earlier said.
Chandrasekaran earlier also identified four core areas on which Air India will focus: These are providing best-in-class customer service, making it the most technologically advanced airline in the world, upgrading and modernising the fleet, and hospitality – both in-flight and off-flight.
The chairman of Tata Sons is himself monitoring the revamp as the company is yet to pick a new CEO. The earlier designated CEO from Turkey earlier refused to join Air India operations by shifting his base to India, the company is since looking to appoint a new CEO.
Meanwhile, Amadeus will give Air India a single platform of advanced technology to drive bookings to help agents efficiently upsell and add-sell for a better mix of high-value fares and get scale advantages, leveraging the platform’s leading position in India and its agency partner network.
The new board of Air India is also working on a turnaround plan. The focus will also be to promote a culture of productivity and accountability led by incentives to perform better.