Airline information technology provider Sita is facing renewed pressure on pricing as it looks to grow its airport systems and IT consulting businesses.
"If we don't continue to act competitively, we will be dead in five years," says Sita group president Peter Buecking. Sita is a co-operative owned jointly by most of the world's airlines.
The group was restructured into two companies three years ago: Sita SC, which manages the interline network; and Sita Inc, focused on individual airline infrastructure software products.
Buecking says the aim is to grow Sita Inc, which recorded $648 million in revenues last year, to "a $1 billion company" within three years. Sita is unlikely to acquire additional companies this year, but other joint ventures, similar to Champ Cargosystems with Cargolux and OnAir with Airbus and Tenzing, will be studied.
OnAir will incorporate Sita's existing on-board messaging services and Tenzing's e-mail, messaging and internet services to airlines. The venture will also develop a range of cabin connectivity services, enabling mobile phone and internet-browsing capabilities.
The European Commission has concluded the joint venture will not "significantly impede" effective competition in those markets.
Source: Flight International
