Etihad installs E-Business Suite

Etihad hopes to better plan for new flight routes using the Oracle E-Business Suite solution it has implemented. The airline will use the solution to support its aggressive expansions plans, which include increasing its destinations from 30 to 70 by 2010.

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By  Diana Milne Published  May 21, 2006

Etihad hopes to better plan for new flight routes using the Oracle E-Business Suite solution it has implemented. The airline will use the solution to support its aggressive expansions plans, which include increasing its destinations from 30 to 70 by 2010. It has deployed the following modules of the suite: general ledger, accounts receivable, accounts payable, fixed assets, cash management, self service expenses, purchasing, inventory management and purchasing and self service procurement. Satyam Computer Services implemented the solution and provided consulting services to Etihad during the deployment. “The speed at which Etihad has grown into a world class airline has been nothing short of astounding,” said Ian Ferguson-Brown, head of brand management and communications at Etihad. “In order to move to the next level, we realised we had to have a world class financial and budgeting system on board, in order to enhance our processes and improve decision making capabilities,” he continued. The company is considering implementing the human resources (HR) module of the solution. Prior to implementing Oracle E-Business Suite the airline was using an in-house developed system, which was put in place when Etihad formed two years ago. This did not fully meet its requirements, said Klaus Giesemann, head of IT for Etihad Airlines, especially the need for effective planning arising from the airline’s rapid expansion. “We were using a system which enabled us to use payroll and take care of accounts payable. But we didn’t have an application that suited our requirements in all aspects,” he said. “We particularly needed a system that would enable us to identify costs with regard to new routes which are being planned,” he went on to add. Oracle’s E-Business Suite will also help integrate all the company’s different offices across the world, which are expected to grow considerably as more routes are added. International offices will now be able to input data directly into the central enterprise resource planning (ERP) system. “Before this was being done manually,” said Giesemann. “The documentation was being sent to the head office from each outpost then being inputted into the main system. It was time consuming and caused a lot of errors,” he continued. Giesemann added that some of Etihad’s internal processes have been streamlined as a result of the implementation. “Staff can now go through the system to order staff tickets, which are then deducted automatically from their salaries. There is a connection now between reservations and payroll,” he explained. Oracle also provides similar business solutions to several airlines in the region, including Oman Air, Emirates Airlines, Qatar Airways, Kuwait Airways, Gulf Air, Royal Jordanian, Middle East Airlines and Egypt Air. “Etihad is a world class airline, and due to current trends in the aviation industry demands a world class ERP system,” said Ayman Abouseif, managing director, Gulf States, Oracle. ”Oracle’s E-Business Suite is that solution and will help the airline to streamline its financial processes,” he added.

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