ERP IMPLEMENTATION IN

AIR INDIA
By
Priyadarshini
Sneha Sekar
Chandeep Kaur
Chitransh Dang
Aakash Goswami

BACKGROUND
Tata Airlines founded by JRD Tata in 1932
Tata Airlines nationalized as Air India
International in 1946
Indian Airlines commences operations in 1953
for domestic routes
Air India enters Jet Age in 1960 with Boeing 707
Low cost airline Air India Express launched in
2005
Financial distress from 2005
Air India and Indian Airlines merged in 2007

CASE STUDY
Escalating costs, particularly of ATF
(Aviation Turbine Fuel).
Fewer passengers, particularly in the
premium class.
Low fares with a gradual shift of
passengers from traditional full service
airlines to low cost airlines.
Decline in carriage of cargo.
Excess capacity in a falling market.

TURN AROUND PLAN

Focus on execution, accountability, cost
reduction and revenue generation.
Adopt international best practices in airline
operation.
FY10 Focus on Survival
FY11 Business restructuring
FY12 Focus on Healthy operating
margins & deliver the future Air India

PROJECT SANGAM

PROJECT STRUCTURE

PROJECT SCHEDULE

TECHNOLOGY
Repair & Overhaul (MRO) software
provider on cloud, tablets and iPad,
announced thatRamco Aviationhas gone
live with its implementation in Air India.
Air India implemented SAP ERP package
for better efficiency and IBM had the
experience of implementing them in a lot
of airlines.
Air India implemented a range of Oracle EBusiness Suite applications as the basis of
an integrated enterprise resource planning
system

SOFTWARES MADE
Oracle E-business Suite
in January 2006, Air India implemented a range of Oracle E-business Suite
applications as the basis of an integrated enterprise resource planning
system. To ensure its business and technical staff could maintain and use
the system , the company sent 40 employees to Oracle University.

Passenger Service System (PSS)

Air India has implemented PSS since 26 February 2011 consisting of
Reservations, Departure Control and associated services such as internet
booking engine, frequent flyer programme.

IT Initiatives for Haj 2010

Department of Information Technology provided Reservation and Check-in
application for NAS and AL-Wafer airlines operating Haj flights for the year
2010-11

 Technical Enhancement
All the stations log on to the central server using secured log-in via
SSL/VPN connection and do centralized Boarding Card
Printing/Check-in.

Projects for Vigilance Department

An interactive feedback form has been made available in the
corporate website in the Vigilance Section and the link is provided
on the home page as well as in about us page

Secure Servers on Virtual Private Network (SOSVPN)

Air India had implemented SOS-VPN for accessing SITA host, based
on multiple favors of Internet Access

SPONSOR
The total cost including software,
hardware and maintenance for five
years and tax was Rs. 255 crores.

BENEFITS OF SANGAM

ISSUES
Change in top management
Delays
Lack of Coordination
Implementation Approach
Data Issues

CONCLUSION
BOB provides the best fit in terms of functionality but
integrated ERP implementation is better in terms of
handling project management, cost and resource
requirement, simplicity of implementation.
Top management support is must for taking ERP
implementation initiatives.
Project management and coordination needs to be
strengthened before going for BOB implementation.
Change management needs to be handled carefully
and objective and benefits of the project should be
clearly stated.

 Data redundancy issues can come up

in a best of breed solution.
A best of breed solution can increase
costs for supporting technology
acquisition and maintenance costs.
Usability and the ability to
collaborate are often diminished with
a collection of best of breed.

THANK YOU!