Qantas Technology Budget Under Pressure

QANTAS, which has just completed the migration of its check-in and departure system to the Amadeus Altea Platform, will reign in IT costs after a spending burst that cost the airline a record $382 million last financial year.

New chief financial officer Colin Storey said IT spending would return to earth and potentially decline over the next three years. “We’re trying to target a flat-line, year-on-year outcome. But you have to consider that we had some high one-off (costs) – it’s a reasonable IT spend,” Storey told The Australian.

Apart from Altea, other major projects included the overhaul of eQ, its Oracle-based human resource and finance system, a project which has been plagued with problems but is now well under way. The big recent IT spend has been considered necessary to create greater efficiency and long-term savings.

Meanwhile, Qantas has reallocated much of its IT spend away from the computing and communications divisions to sales and marketing because “it’s more fairly represented as a cost of distribution,” Storey said. Travel Trends: October 13, 2008

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