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To enhance its operational efficiency

STRATEGIC PARTNERSHIP: Mr Vijay Mallya, Chairman, Kingfisher Airlines, with Mr Tom Klein, Executive Vice-President & Group President, Sabre Travel Network/Sabre Airline Solutions, at a press conference in Mumbai on Tuesday. — Paul Noronha

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Mumbai Feb. 6 As part of its strategy to introduce high-end IT applications in its operations, Kingfisher Airlines has tied up with global airline software and services major Sabre Airline Solutions for providing a complete suite of more than 20 enterprise applications that would enhance its operational efficiency.

With the implementation of Sabre's passenger reservations and departure control systems, the airline will be able to manage its reservations, pricing, ticketing and reporting more efficiently.

"We entered into a strategic partnership with Sabre as we wanted to get it right first time. We are also tapping into Sabre's airline consulting expertise to ensure we are adopting airline management's best practices," Mr Vijay Mallya, Chairman and CEO of Kingfisher Airlines, told reporters here today.

Asked what the Kingfisher-Sabre partnership was valued at, he said: "It is a multi-million dollar deal." Sabre offers more than 70 software suites covering the entire spectrum of airline operations. Kingfisher's entire suite of Sabre products is fully hosted through Sabre eMergo Web access — an application service provider that provides the technology without the cost of acquiring and maintaining costly hardware and infrastructure system. He said the airline was leveraging other technology from Sabre to help analyse the market and determine the best approaches to maximise revenue. Through a separate deal, Kingfisher will distribute its inventory through Sabre's global distribution system. It has signed a Direct Connect Availability agreement, which will enable the airline to market and sell its products through all Sabre-connected travel agents globally.

ATF Prices

In response to a question on low-cost airlines, Mr Mallya said selling tickets at below cost price just to build up market share was one of the major reasons for the ill-health of the industry.

He lamented that oil companies in India do not reduce ATF price proportionately when crude prices come down. "If crude prices rises by let us say $10 per barrel, the entire hike is passed on to the airlines. But it the prices were to come down by $10 per barrel, airlines get only a small percentage of this," he said, adding that this was one reason why there can never be low-cost carriers in the true sense of the word in India.

He instead prefers to call them low-fare carriers. He said the industry was looking for a cut in ATF prices and excise duty in the forthcoming budget.

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