Air NZ targets tech savings

By Phil Boeyen, ShareChat Business News Editor

Monday 5th March 2001

Air New Zealand (NZSE: AIRVA) and Ansett are expected to almost halve some of their technology costs after awarding a workstation contract to Auckland-based company Gen-i.

Gen-i says it has been selected as the preferred supplier for the largest technology contract awarded to a New Zealand IT company, with an agreement to manage around 11,500 workstations for the combined Air New Zealand Ansett group.

The contract is expected to generate multi million dollar savings for the airlines over the next three years, and includes supplying PCs, terminals and servers.

Gen-i - formerly Wang New Zealand - says it will manage all desktops and servers and the airline's point services, which include bag tagging, kiosks, and some check-in facilities.

Air New Zealand says the contract is a key part of the airline's focus on reducing IT costs and establishing a sound group IT infrastructure.

"This infrastructure will enable the integration of the systems and processes used by Air New Zealand and Ansett Australia, and will therefore improve service and reduce costs in the wider business," the company says.

Air New Zealand says it had identified group-wide IT integration as critical to the successful functioning of the airline's business. It will also have been identified as one area the battling airline can achieve some of the hoped-for synergy savings between the two airlines

These kind of savings will become increasingly important as the company fights to win back Ansett market share, although the air fare war in Australia is continuing to heat up.

Upstart discount airline, Impulse, has just released a fare of just A$39 on the Sydney-Brisbane route.

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