SITA director general John Watson explains to Mark Pilling how this leading telecommunications and IT player sees developments in the airline and airport world over the coming years.
Q. Can you describe SITA's relationship with the air transport industry in one sentence?
A. We are working in close partnership with the air transport industry, providing integrated telecommunications and information technology (IT) solutions.
Q. Where will SITA be in the next five years?
A. Our goal is to continue on our path of sustained growth. Last year we reported revenues of $1.57 billion, double those of 1995 and we aim for around 15% growth in the years to come. To achieve this we will continue to provide competitive global network services and lead the industry's move to Internet Protocols, while speeding development in our industry-specific applications, desktop services and new e-business activities. An initial public offering (IPO) is planned possibly in three years for our new commercial arm, SITA Information Networking Computing (SITA INC).
Q. What will SITA contribute to making life easier for the air traveller?
A. Through every step of the journey for both passengers and cargo, SITA's technologies provide the ‘invisible facilitator' behind the scenes. We're focused on further simplifying the journey for the airlines' customers. Wireless technologies, electronic visa authorisation - which we already provide for the Australian government - and our interline e-ticketing services will help take the paper out of the system and cut costs, and online ticketing allows people to book tickets over the Internet. Invisible to the air traveler, we're helping reduce delays by speeding the maintenance process, streamlining the loading and provision of catering as well as providing flight information and working on all aspects of the operation of an airline.
Q. How will your organisation help to keep the air traveller entertained?
A. I guess that every traveller has a different definition of ‘entertainment', but ‘e-mail at 30,000ft' is already available for passengers, and SITA has long played a crucial role in enabling the provision of in-flight communications such as on-board telephony and fax. The in-flight communications market is developing fast and we have partnerships that enable e-mail and web-access and in the future ‘GSM in the sky' will come true.
Q. What acquisitions or similar is SITA likely to make to fill any holes in its portfolio, to develop new products and services, and to target new markets?
A. Our current portfolio will be expanded through organic growth and by adding complementary services through acquisition and partnerships. Over the coming year this will accelerate as our growth plans centre on SITA becoming the first-choice partner for integrated IT solutions. For example, earlier this year we purchased the Advanced Information Technology (AIT) business from Northrop Grumman Canada to provide self-service kiosks for airports and airlines and we are working with UK company ACUMA to provide business intelligence for airlines.
Q. Where do you see the industry going over the next five years?
A. The air transport industry has always been fiercely competitive and very dynamic - and I believe that change will only continue to accelerate. The recent rise of airline alliances and the initial success of some ‘low-cost' start-ups are signs of the battles ahead. Using the latest technology and web-based tools will be vital as organisations look to differentiate their products, improve customer service and expand. Further consolidation appears inevitable across the industry.
Q. What is the biggest barrier to adoption of IT in the industry?
A. The biggest barriers are ensuring that the legacy technologies - that still dominate the massive historical investments - work effectively in the Internet world, and that skilled IT experts, especially those with airline experience, can be found.
Source: Flight Daily News
