British Airways to implement new customer management system this year

British Airways is planning to implement a new customer management system in 2014.


British Airways is planning to implement a new customer management system in 2014.

The new, critical operational system “provides passenger check-in and aircraft loading,” according to BA parent company International Airlines Group’s (IAG) full-year results published on Friday.

IAG warned that disruption to operations during the implementation of the new system was a possibility.

“The project has a strong risk management workstream designed to minimise, but not eliminate, the risk of disruption during implementation,” it said.

In addition, IAG said that it had improved the reporting function of its management information systems to provide a more accurate - and consequently lower - estimate of its frequent flyer programme revenue.

“Historically, management information systems have provided a constraint on the reliability of revenue recognition at the point of departure,” it said in its results.

“As part of a group-wide exercise to review the existing frequent flyer programmes, reporting has been developed to better estimate the revenue that should be deferred to departure and so this new management information has been adopted during the year giving rise to a current year reduction in passenger revenue of €106 million, and a related tax credit of €23 million.”

IAG reported fourth quarter operating profit of €113 million, up from an operating loss of €40 million in 2012 before exceptional items, and operating profit of €770 million for the year to 31 December 2013, up from an operating loss of €23 million before exceptional items. The frequent flyer revenue reduction was listed as an exceptional charge.

In 2002, BA signed a deal with Teradata to supply its customer relationship management (CRM) solution to improve analysis and implementation of marketing campaigns, replacing a system from Chordiant.

Earlier this month, BA deployed an open source virtual estate using Red Hat Enterprise solutions to support its expanding web presence. It says it receives more than 450,000 visitors to each day.

In addition to the website, Red Hat Virtualisation will support other Linux workloads, such as applications used internally at the company – both for pre-production and production environments.

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