The enterprise resource planning (ERP) solution will replace existing systems and integrate MAS' finance, human resource, and engineering and maintenance operations in two phases from this year to 2012.
"The total benefit expected from the project is estimated at over RM120 million per year, once fully implemented in 2012," MAS managing director and chief executive officer Tengku Datuk Azmil Zahruddin told reporters at a briefing in Subang Jaya, Selangor, yesterday.
MAS picked HCL Axon and SAP as its partners for the project.
The system will centralise all the airline's data and allow it to obtain real-time information.
This will boost cost efficiency, improve decision-making and employee productivity, and optimise cash management, Tengku Azmil said.
"This is part of our overall business transformation process," he remarked.
MAS normally invests between 1 per cent and 2 per cent of its annual revenue in information technology, he added.
On another matter, Tengku Azmil said the airline was still in discussion with Airbus SAS over the repeated delays in the delivery of six superjumbo A380s.
Tengku Azmil, who had previously indicated that MAS might consider cancelling its order, said he "may" reach a decision on that before the end of the year.
"That's still under discussion, so anything I say now will be purely speculative," he said when pressed for updates on the matter.
MAS made a net profit of RM310 million in the first quarter of this year, due mainly to a RM329 million payment from Airbus as compensation for the late delivery of the six A380s.
Tengku Azmil declined to comment on the airline's second quarter results, saying only that, historically, the second quarter is "tougher" than the first.
It will report its second quarter results next month.
By Adeline Paul Raj
Business Times
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