It is understood that Spanish IT solutions provider Amadeus is bidding for Philippine Airlines (PAL) comprehensive passenger service system (PSS) system contract.

The PSS system covers the reservation, inventory and departure control of a full-serviced airline. PAL is to upgrade its IT systems in a move to become more cost efficient and globally competitive.

PAL asked bidders to submit their PSS proposals last year. The Lucio Tan-owned company, which is undergoing labour issue problems, is expected to announce the results of its decision by next month.

Currently, Amadeus distributes PAL’s international bookings through its global distribution system, but runs on a 40-year-old IT system PACERS 2 system.

Amadeus would like to expand its partnership by proposing to provide its entire PSS, which covers the reservation, inventory and departure control,of the country’s one and only airline company.

While adapting to the new Amadeus Altea Suite, which is being used by most legacy airline companies globally, could mean displacing some people because this means automating some functions, this new way of doing business would add more value to an airline because it would mean efficient operations and cost efficiency.

Outsourcing of IT system will enable the airline to allocate more resources to more critical areas of their business.

So far, 160 airlines are using the Amadeus platform because it provides better integration with travel agents and airline partners. Amadeus Altea Suites accounts for 64% of One World airline alliances, 30% of Skyteam carriers and 63% of Star Alliance Carriers.