Choose radical versus incremental changes

From the proliferation of low cost carriers to increasing fuel prices, from market downturns to deregulation, these are challenging times in which to try to generate sustainable profit.

Full service airlines are faced with a tough choice: to radically transform their business or to make incremental changes for a minimal cost. In fact, evidence shows that the second strategy does little more than prolong the crisis.

It is already becoming clear that the airlines that survive and win are those that have radically restructured themselves and re-thought their business model, seizing every opportunity.

Those new generation airlines that do things differently will emerge from the turmoil poised to dramatically outperform the rest and ensure long-term profitability.

Take advantage of new generation solutions

Your passenger service systems are as vital as your aircraft. They can provide real competitive advantage, driving leaner processes, lower cost structures, differentiated and consistent customer services, seamless alliance and faster decision-making.

But it is almost impossible to achieve such a breakthrough within the constraints of legacy systems that were designed to suit the business models of 30 years ago.

Migrating to a new generation Customer Management Solution is a prerequisite for successful business transformation. At the same time, some stand alone IT solutions can prepare or complement this transformation.

Use the right technology & transformation partner

Few airlines can afford to build and implement new generation systems, costing hundreds of millions of dollars, in order to achieve such a radical transformation on their own.

Do you have the in-house skills and experience to manage a risk-free migration? Could you convince your shareholders to divert financial resources from your core business? Can you expect to reach the critical mass to amortise the development cost and maintenance in the long run?

Amadeus can partner with you to provide the solution you need. You will undoubtedly gain from our unique expertise in managing the technology enabled transformation of your business.

Execute your multi-dimension business transformation

Changing your critical operational systems enables you to re-think your core processes and define the most efficient way to run your business and implement corporate strategy.

Moreover, you will gain the strategic ability to adapt to any new environment very quickly and to evolve to meet future requirements.

A new generation Customer Management Solution is the critical enabler of a multi-dimension transformation which can be summarised as follows:

Expected financial benefits

Radically transforming your business creates significant value if you can seize the unique opportunity to re-design your business by leveraging the new generation solution.

Amadeus distinguishes between:

• the total value of the transformation taking into account the full impact of the business transformation (with the eventual contribution of other parties) and created after a ramp-up phase (typically estimated as 4 years)
• the secure value depending only on the Amadeus solution and limited to quantifiable benefits. This value tends to be much more short-term (shorter ramp-up phase of 1-2 years)

The financial benefits of a technology enabled business transformation for an airline depends on the current status of its business and IT operations (level of sophistication, outsourced or not, etc), the scope of the Amadeus solution and the airline's business strategy.

As a guide, airlines generally estimate the secure value of a full technology enabled transformation (including at least two Amadeus Altéa components) as being between US$1 and US$8 per passenger boarded.

Source: Amadeus Value Proposition workshops.

These significant results justify the investment in a new generation IT solution and ensure a strong return on investment despite the cost of change.