Tuesday, April 30, 2019

Air India sticks to erring vendor SITA

In spite of two technical glitches causing operational disruption and financial loss, state-run Air India has refused to claim compensation from its passenger service system (PSS) provider SITA.

The airline remains committed to Rs 800 crore deal under which SITA is required to provide IT solutions for baggage check-in, boarding and tracking technology.

SITA is a global airlines IT services solution major providing airport and related services to a host of airlines.

"It is surprising that the airline has not debited SITA for the huge losses caused by shutdown of its server. In the recent technical glitch the airline had to delay hundreds of flights," said an Air India insider.

He added that instead of penalizing for the poor performance, the airline decided to extend the contract period to two years.

Explaining the two-year extension, another airline official said that this provision in the contract meant for finding a new vendor after eight years.
30/04/19 IANS/Business Standard
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