Airline invests in new technology

Singapore Airlines (SIA) is investing more than $21 million in new technology to manage the allocation of airline seats more effectively.

The multimillion-dollar investment - aimed at minimising seat wastage and maximising revenue for the airline - covers the cost of software and hardware.

The new system, dubbed Krismax II, is being developed by Pros Revenue Management a US-based airline consulting and systems developer.

Pros' 200 staff will work closely with SIA's technology staff to customise the solution to overcome the complexities of matching seat capacity with customer demand.

SIA senior vice president Huang Cheng Eng said the Pros system will forecast demand based on historical travel patterns and current booking trends.

Once a flight has departed seat revenue cannot be improved, he said.

"Ultimately the customer will benefit, because we won't have to deny anyone a seat. We can prevent situations where customers in one market are waitlisted while seats allocated to other markets remain unsold," Huang said.

SIA expects the incremental revenue earned in the first year alone will offset the cost of developing and implementing the new system, which will be operational by 2002.

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