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SITA reports aggregated revenues of US$1.554 billion

Search ASIA Travel Tips .com Monday, 24 April 2006

SITA has reported aggregated revenues of $1.554 billion ( 1.295bn) for the year 2005. The company is moving towards a consolidated organization, boosted by record volumes of new business over the last three years, combined with investment in ground-breaking ventures such as Aviareto, CHAMP Cargosystems, CertiPath and OnAir.

Paul Coby, SITA Chairman, commented, The last three years in SITA have been a period of consolidation for our existing businesses, with growth and innovation in new areas to the benefit of the air transport community. We responded to the industry crisis 3 years ago by providing solutions to generate revenues and reduce costs.

Now like the air transport industry as a whole, we are growing healthily in terms of volume and looking for new ways to help our customers. SITA has come out of this challenging period in better business and financial shape and is now ready to lift its performance to the next level.

In 2005, SITA did a good job supporting our air transport community. Both the applications services and the communications services businesses exceeded their new business targets by 30%. This has helped create a solid foundation for integration into a single SITA organization planned to start this July.

This change, which is designed to deliver a clear shareholder strategy, a stronger position in the market place, a single integrated approach to the customer and a simple and cost effective governance, management and organization structure, will be subject to member approval at our Annual General Assembly in June.

SITA Inc, the applications services business, recorded revenues of $726 million, 13% above 2004 revenues of $642 million. SITA Inc achieved several breakthroughs in 2005, namely the incorporation of OnAir, the launch of CHAMP Cargosystems, and the $200 million outsourcing agreement with Dsseldorf airport.

Francesco Violante, MD of SITA INC and CEO designate of the new consolidated SITA organization, commented, In 2005 we won new business to the value of $582 million which brings the Total Contract Value for new wins over the last three years to $1.386 billion, a clear vindication of our business strategy. We do expect that our investments in both OnAir and CHAMP Cargosystems will result in significant financial benefits for the company in the coming years.

SITA Inc performed particularly well in Europe where revenues were up 20% to $310 million. The Asia Pacific region last year saw many large airport deals for SITA in Bangkok, Kuala Lumpur and Beijing and revenue figures grew accordingly by 15% to $136 million. In the Middle East and Africa, revenues grew 16% to $148 million. Revenues in the Americas remained stable at $132 million.

SITA SC revenues were $828 million last year while at the same time the company continued to deliver communications cost savings to the industry of $111 million. Total cost savings to the industry over the last two years come to $230 million. The company also brought in $158 million of new business in 2005.

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