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Aviation clients to wait and watch

Shubhra Tandon

Mumbai, Jan. 9 While Satyam Computer continues to walk the tightrope, early feelers from its aviation clients suggest that they would rather adopt a wait and watch attitudeAirbus and Qantas Airways claim that the tainted Indian IT company’s involvement has been limited in their projects.

Satyam participated in the creation of Airbus 380, the world’s largest passenger aircraft launched by the French aircraft manufacturer. Asked if it was seeking to continue this relationship, Airbus’s Director of Industrial Corporation, Mr Dwarakanath Srinivasan, told Business Line, “We do not foresee any problems in 2009. Satyam is one of the many Indian suppliers for A380 and its role is very limited. Their new CEO has also assured us that our services will be completed in time.”

In June 2008, Satyam announced that it has been awarded Tier 1 Engineering Supplier Status by European Aeronautic Defence and Space Company (EADS), one of the international leaders in the aerospace and defence industries. Airbus is the aircraft manufacturer arm of EADS.

Australian carrier Qantas Airways also said in an e-mail response that Satyam continues to provide IT services to the carrier and no impact to systems support and maintenance is expected currently. However, it clarified that it was not the sole service provider. “All Qantas data and systems are hosted in the IBM data centre — so Qantas has no system infrastructure dependency with Satyam,’ the statement said.

Course of action

On the future course of action the airline may adopt, statement said, “In the event that Satyam’s ability to deliver services is to be impacted, Qantas has the ability to activate alternative internal and external arrangements to ensure the continuation of seamless services.”

Currently, its IT services are in touch with senior Satyam management to ensure Qantas is aware of any relevant changes to the current situation, and they continue to monitor the situation to assess risks and contingencies.

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