http://www.atwonline.com/magazine/article....?articleID=1752
Interesting looking back to October 2006
Beery estimates he will spend $75-$80 million on the IT integration effort, with expected benefits of at least $100 million out of a projected $600 million in annual merger synergies. EDS and Sabre Airline Solutions remain the primary systems vendors. A number of AWA's internally developed systems will be retained, along with some boutique solutions.
To IT expert Richard Eastman, president of The Eastman Group, the new US Airways has turned its back on the established legacy systems in favor of a "mix-and-match, home-managed solution" that fits its specific goals and objectives of becoming a nationwide LCC. "When combined with the new distribution pricing models being adopted by US carriers, plus the re-tooling of the major legacy hosts, US Airways seems to be leading a move to lower-cost, airline-managed technology solutions," states Eastman.
"Integrating the IT systems and cultures of the two airlines are by far the most important and complex parts of this integration process," says Beery's boss, Executive VP-Marketing and Planning Scott Kirby, who also comes from the America West side of the aisle. He gives a B grade to the integration effort thus far. "We've avoided the big problems," he says, but he concedes there are limits to customers' patience with the go-slow approach. In the carrier's defense, he points out that "the downside of flipping the switch too soon is much [worse] than waiting and spending a little more money."
Nevertheless, the choice has some experts puzzled. "It's not that Shares is bad, but it is kind of basic whereas Sabre is more comprehensive," Harteveldt opines. Another potential problem: Shares represents a very small portion of the revenues of EDS, which still relies heavily on large mainframe applications, "So EDS may not invest in this system to the same degree," he suggests. An EDS executive tells ATW that Shares does not need to be "sized up" and that the company will enhance it as the market dictates.
Interesting looking back to October 2006
Beery estimates he will spend $75-$80 million on the IT integration effort, with expected benefits of at least $100 million out of a projected $600 million in annual merger synergies. EDS and Sabre Airline Solutions remain the primary systems vendors. A number of AWA's internally developed systems will be retained, along with some boutique solutions.
To IT expert Richard Eastman, president of The Eastman Group, the new US Airways has turned its back on the established legacy systems in favor of a "mix-and-match, home-managed solution" that fits its specific goals and objectives of becoming a nationwide LCC. "When combined with the new distribution pricing models being adopted by US carriers, plus the re-tooling of the major legacy hosts, US Airways seems to be leading a move to lower-cost, airline-managed technology solutions," states Eastman.
"Integrating the IT systems and cultures of the two airlines are by far the most important and complex parts of this integration process," says Beery's boss, Executive VP-Marketing and Planning Scott Kirby, who also comes from the America West side of the aisle. He gives a B grade to the integration effort thus far. "We've avoided the big problems," he says, but he concedes there are limits to customers' patience with the go-slow approach. In the carrier's defense, he points out that "the downside of flipping the switch too soon is much [worse] than waiting and spending a little more money."
Nevertheless, the choice has some experts puzzled. "It's not that Shares is bad, but it is kind of basic whereas Sabre is more comprehensive," Harteveldt opines. Another potential problem: Shares represents a very small portion of the revenues of EDS, which still relies heavily on large mainframe applications, "So EDS may not invest in this system to the same degree," he suggests. An EDS executive tells ATW that Shares does not need to be "sized up" and that the company will enhance it as the market dictates.
