Jetstar Pacific Airlines Development orientation of Information Technology Jetstar's development objective is to build good Aviation IT systems in the region.. Engineering Maintenance M
Trang 1Topic: INFORMATION TECHNOLOGY SYSTEM OF JETSTAR
PACIFIC AIRLINES
1 Introduction of Jetstar Pacific Airlines
1.1 Development process of Jetstar Pacific Airlines
The company was established and operated in according to the decision dated 116/CT April 13, 1991 and 188/CT June 15, 1991 of the President of the
Council of Ministers, Decision No 2355 QD / DOP-Labor December 12, 1990 and decision No 2016 QD / DOP-Labor September 20, 1992 of the Minister of Transport and Post Office
In 1993, the Vietnam Civil Aviation Department was restructed to become National Vietnam Airlines (Vietnam Airlines) The stock sof the Department of Civil Aviation were transfered to Vietnam Airlines In 1995, Pacific Airlines became one of the member of Vietnam Airlines and since 1996 has been a member of the Vietnam Aviation Corporation (Vietnam Airlines Corporation)
By 2007, Quantas Group (Australia) has acquired 30% stake in Pacific Airlines and becoming a strategic shareholder and decided to change its name to Jetstar Pacific Airlines, opning a new period in the history of Jetstar’s development
Fleet: Including 2 airplanes namely Boing 737 - the most successful
commercial aircraft in the world and others four Airbus A320 In the future the system will be replaced entirely by Boing A320 raising the fleet to 35 aircrafts
by 2020
Trang 21.2 Jetstar Pacific Airlines Development orientation of Information Technology
Jetstar's development objective is to build good Aviation IT systems in the region Period 2011 - 2020 is very important, bearing hinges, the development orientation To ensure the construction of modern ICT systems, closely following by the development of technology in the world, meeting the management of a regional scale Airlines as indicated in the general direction There are four main objectives as following:
Objective 1: Develop core systems to meet the requirements of
management and exploitation of large-scale (in terms of number of aircraft, number of passengers), wide area (route network) Prioritizing mining Operations; Trading Services; Management; financial accounting
Objective 2: Develop convenient and modern services for the customers.
Keep up with the trends and the technological level in the ASEAN region
Objective 3: Ensure IT system being operated safely, stably, reliably and
meeting the requirements of the business system
Objective 4: Tight cost management and IT investment efficiency.
2 Status of information technology at Jetstar
2.1 Current status
Since 2001, Jetstar (then still undered the control of Vietnam Airline) had early built up master plan on information technology as a guide for the development
of information technology projects During this period, the firm has invested in critically applicable systems in Trading Services, Finance and Accounting,
Trang 3Operations Executive, Technique Specificly; the field can be listed as follows:
Infrastructure equipment and general technology : The company has
equipped efficietly PCs for all the office workers; being one of the units use the Internet to facilitate and invest modern working environment for staff convenience
Financial Accounting Management: The Company has invested GAS system
(General Accounting System) of Oracle This is a general accounting system in accordance with international standards, including the modules corresponding
to the key functions of the Accounting activities such as setting up ledger, management of receivable and payable accounts, inventory management and fixed assets
Revenue management : In 2007, the Jetstar has invested RAS system (Revenue
Assurance System) of Kale Revenue management system which allows to connect online ticketing stages, clearing to the averagely revenue data warehouse, total revenue and output reports
Ticketing, reservations, interaction with customers: besides the traditional
CRS (Computerised Reservation System) allowing to book directly, connecting
to the distribution system and agents worldwide for making reservations, the Firm has developed e-commerce since June 2009 (all software developed by Sabre) Guests can purchase tickets, on-line reservations, information checking, conditions of carriage, and other promotions through the company’s website
Service at the airport : investment of Sabre DCS (Distribution Control
System) The system allows connection to access information from buying
Trang 4tickets moment, airport reservation doing check-in procedures to provide special services (meals, trolleys, etc.)
F
light schedule: use Netline system allowing sorting, display, track, flights
operation including season schedule plan (half of a year) to weekly and daily operation
Engineering Maintenance ( MRO): The Company has also invested an
information technology system International standard of AMASIS
Frequent customer program : Jetstar has put into operation the customer
management software, including personal information, account, preferential policies, connected with the airline system of partners so that the customer can earn bonus points even since traveling on flights of the partners
The schedule of crew and flight attendants: Crew management system by
Lufthansa Systems which are being using allowing to sort crew’s flight hours and fight attendants reasonably (allocated according to the flight area, ensuring noflying over the limit)
Management of goods : The company has invested Sita system to manage the
ordering and supply management in the flights for goods
With such mentioned investments, Jetstar can be classified as moderate in the world aviation in the application of information technology for business operation
2.2 SWOT assessment
Strengths:
- Jetstar Pacific Airlines is considered as dynamic aviation, on rapid development ;
Trang 5- Recognizing the importance of information technology, the company has long-term plans for the application of information technology;
- Basically, Jetstar’s investment projects require the information technology
of an advanced airline and better service for production and business activities;
- Officers and employees of Jetstar in general and information technology teams in particular adapt to the modern environment, new technology to server effectively for the job;
- The company began implementing a professional model of the operation
of information technology (general management corporation; out site hiring some information technology services)
Weaknesses:
- The company does not focus on the synchronization between the blocks This leads to the effective application in each block but not yet effective link between the blocks;
- Schedule of development of information technology projects is long Therefore, some projects have not met their business needs;
- After a period of operation, a number of application systems go down in quality (for example,: Netline Scheduling System, Crew management) The reasons are as following:
+ No focus on training and retraining for the operation of the applications;
+ Not regularly review and improve the extraction process;
+ Less attention to maintain and ensure effective operation since the system has gone into operation
Trang 6- In addition, the company has not invested some useful software to increase the efficiency of production and business activities (for example: Rout Profitability management)
Oportunities
- Vietnam Airlines will continue to be assessed under the group of the world's growth over the next 10 years, creating a favorable environment for investments in information technology;
- The growing trend, the power of information technology and e-commerce allow the company to have more choices, more tools to execute their business ideas;
- Vietnamese passengers’s knowledgement and understanding of information technology's help them have better adaption with the application of new technologies
Challenges:
- The direct competitors such as Thai Airways, Singapore, Vietnam Airlines
or Indochina Airlines have its highly advanced information technology foundation; there is considerable distance from Jetstar
- In general, Jetstar customers, especially the Vietnamese, Vietnamese overseas have les ability to pay, affecting the financial performance of the investments, the ability and the payback period for the major information technology projects
- In the country, the level of e-commerce and the legal system has not been complete IT firms provide unqualified IT services These are difficulties for the IT development of Jetstar
Trang 73 Comparision Jetstar Airlines with other airlines (Indochina, Malaysia Airlines, Singapore Airlines, etc.)
Although there have been significant advances of information technology applications in business and business administration, but in comparíon with other airlines, Jetstar Pacific Airlines is still going behind with a considerable gap Here are some new applications of information technology of the airlines:
Airlines
Effective management
routes system - Route
Management System:
This is a system that allows
connection to the database
system of revenue, online
cost and effectiveness of
each flight after taking-off
Indochina Airlines
Not yet
Revenue and costs are caculated generally in a
calculating for each flight, it must be used the backward allocation method
System-flight wireless
entertainment (games,
music, movies, etc.)
Equipment: This system
helps the flight without
passengers can connect
individually such as laptop,
smart phone, or tablet with
American Airlines, Singapore Airline…
Not yet
Still have to use wireless devices
Trang 8a server on the plane This
solution reduces the weight
of the airplane, improve the
efficiency of operators and
service suppliers
SMS Boarding pass: the
service allows customers to
access the airline's website
to check flight information
and receive a bar code
boarding link sent to
passenger’s mobile phone
At the airport, passengers
can scan the bar code
displayed on the mobile
device screen, at security
gate and during the flight
Emirate, Singapore
Airway
On going research of applications
4 Strategy and planning of information technology applications of Jetstar Pacific Airlines.
Currently, the application of information technology in the aviation sector is very diverse, more advanced, modern, and aims to increase inconvinience to the passengers as much as possible However, for each airline, investment plans are needed to perform on the basis of its general orientation features its own passengers Specifically, for Jetstar, it is necessary to study carefully the following factors since investing:
Trang 9- Vietnam's economic situation and the international route markets are
expected to exploit As these factors directly affect the affordability of
passengers traveling on Jetstar In fact, the affordability of Vietnamese citizens is not high (GDP per capita that is above $ 1,000 is one of the lowest place of sthe world) Foreign passeners to Viet Nam are those who are on the average income
- Cultural level of demand and customer’s service using Jetstar
passengers do not have very high requirements in terms of service quality, convenient but more attention to the reasonable economic ticket prices
4.1 Strategic development of information technology applications of Jetstar Pacific Airlines
On the basis of the above factors, the strategic application of information technology development for Jetstar in coming years are as follows:
- Develop long-term strategies for the development of information technology on the basis of the overall analysis of market factors, the financial abilitys, legal environment, etc
- Investment priorities for applications to develop infrastructure of identifiable information technology, such as: general database, unification
of the ticket sales, reservations, revenue management, cost so that the agencies can access and use to analyze, and report on the various specialized sections
- Innovation and improvement of the IT organization and IT systems in the TCT Clearly define functions and responsibilities between Headquarters and units, leaders and experts, strongly innovative methods from self-financing activities to operating management mode Strengthen human resources in terms of quantity (in the scheme) and quality
Trang 10- Advanced management capabilities from quantity to quality assurance, taking quality as a measure of service response, increasing in controlling the costs, ensuring reliability and efficiency of ICT operation, enhancing equipment and management toward management in accordance with international standards
- Market segmentation, routes in accordance with passenger’s flying habits, payment ability, and level of competition to focus investment in appropriate technology For example: for the long flight to Singapore, Australia should be invested in advanced entertainment media; short flight to the local airport in the country, the level of investment is limited because the customers do not pay attention to entertainment as the flight time is too short, they just care of reduction in ticket prices
- Build up ensuring system appropriate with IT model of TCT, strictly managing the quality services, gradually improving the quality of IT services to ensure high reliability, striving to provide a full IT service system with reliability in comparision to the leading firms in the region
- Regularly updated technology trends in the aviation industry in the region and the world Recognizing the challenges and opportunities to ensure IT infrastructure going ahead of business requirements
- Improve investment procedures of information technology projects Find plans to accelerate investment and ensuring compliance with provisions of the state
- Pay more attention to the project developmentt, ensuring good management and quickly put the project into effective operation exploitation
Trang 114.2 Specific action plans of Jetstar Pacific Airlines
- Upgrading / new investment of management system Engineering Maintenance Aircraft MRO (Maintenance and Repairs Operation); flight schedule, flight administration, management of pilot and Stewards;
- Continue upgrading and improving the features of e-commerce Web sites, ensure access speed, friendly interface to the customers;
- Invest analysis system of effectiveness routes;
- Upgrade three systems of Call Center at the Regional Office to Contact Center as a focus system
- Invest management software of human resources (HR)
- Invest MIS management information system
- Implement resource management system (ERP)
- Implement the use of advanced technologies in the airplane (information, entertainment, etc.)
CONCLUSION
In the recent years, Jetstar Pacific Airlines has always pioneered in the investment and application of information technology in manufacturing operations However, in order to achieve further developement into the No 1 airline in Vietnam and have a place in the region, the company also needs to continue to scrutinize, the overall long-term strategies to invest for the application of information technology and e-commerce, thereby, increasing business efficiency and resources while improving the quality of passenger