SITA members have approved plans to form its information technology businesses into a separate company, raising the prospect of substantial windfalls for airlines when the new entity goes on the stock market.
The move has been prompted partly by SITA's success in creating Equant, which provides data services to non-aviation-related industries, using the organisation's net- work. Equant is valued at over $19 billion and share sales have netted member airlines substantial sums.
SITA, the airline-owned aeronautical communications giant, is a non-profit "société co-operative" based in Geneva, Switzerland. The new company will be registered in the Netherlands providing IT network integration and aircraft-to-ground datalink services, as well as Internet protocol-based desktop computer systems.
The company will initially be owned by SITA members, with plans to float one-third by 2002. "The changes will support SITA's strategic development and enhance its ability to meet growth targets," says SITA director-general John Watson. KLM and Air Canada netted $59 million and $28 million, respectively, from the part sale of their Equant holdings. Other beneficiaries include LanChile and Israeli flag carrier El Al.
Source: Flight International
