Recession causes BA to slash IT spend
08.06.09
British Airways has slashed its IT budget by nearly a third as the airline struggles to cope with high fuel prices and the slump in passengers caused by the recession, Computing reports. After reporting record losses last month, the airport has set about reviewing all areas of the business where savings could be generated, with IT reported to be in the firing line.
The 30 percent IT spend reduction means that BA now has an annual budget of £140m to maintain its IT systems and an additional £68m to invest in new initiatives. BA chief information officer Paul Coby told Computing: ‘It is essential that IT stays on the agenda, but at the moment all we need to look at are opportunities to become more cost-effective. We looked at the business priorities against the challenging market conditions and decided that we should only proceed with things that support business continuity or translate into an improvement in customer service.'
‘When the recession ends and people start travelling again, we will have to think about the projects that were postponed, but that is not going to happen tomorrow. We do not see any recovery at the moment, but we have a long-term plan and will be continually considering and factoring in any market changes.’
Add to: del.icio.us | Digg it | Newsvine | NowPublic | Reddit
To book heathrow airport hotel or heathrow airport car park at the lowest price, click on these links to two great heathrow airport car parking and heathrow airport hotel price comparison page
