Qantas’ annual results are as ugly as expected — it lost $2.8 billion. One of the few bright spots was a reduction in how much it spent on tech.
In the financial year ending in June 2014, Qantas spent $394 million on “computer and communication” (its phrase). In the year prior, it spent $418 million. That’s a 5.7 per cent reduction.
Despite the reductions, Qantas noted the importance of IT to its continued operation: “The Group’s operations depend on the continuous functioning of a number of information technology and communication services. The Group has an extensive control and management framework to reduce the likelihood of outages, ensure early detection and to mitigate the impact.”
Qantas has also finally decided not to sell its Qantas Loyalty scheme, which operates its frequent flyer program. That represents an interesting IT challenge — the core system still uses COBOL code.
Comments
3 responses to “Qantas Spent Less On IT This Year”
The Loyalty scheme seems to be the only part of the company that is making a profit. Why would they want to sell it?
If it’s making a profit, you can sell it for a good price. You can then use this money to repay some debts. It’s a shortsighted view – but it’s in line with the Harvard School of Business. I highly recommend anyone interested in politics and business read about the Harvard School of Business … from anyone except Harvard. It’s a REAL eye opener.
I fully agree with the “important of IT”. Does anyone proof read your articles before publishing? Hate to nitpick, but I haven’t read an article yet today without some jarring grammatical error.