IBS Software Services, a provider of IT solutions to the travel, transportation and logistics industries, has marked its entry into the domestic air cargo space by signing a five-year contract with Kingfisher Airlines to deliver cargo management solutions via its software-as-a-service (SaaS) offering iCargoNet.
V K Mathews, chairman and CEO of Thiruvananthapuram-based IBS Group, said that the contract would be priced on a per-transaction basis under the SaaS mode and would be hosted and delivered out of the company's 2,000-people strong development centre in Thiruvananthapuram.
iCargoNet, which is expected to contribute 15-18 per cent of IBS's revenues in fiscal 2009, provides is a unified solution which can be implemented across different cargo touchpoints of the enterprise. The contract with Bangalore-based Kingfisher Airlines will help it manage its entire cargo business ranging from planning, sales, operations, ground handling, and Unit Load Device management to cargo revenue accounting and revenue optimisation functions. The iCargoNet implementation comes at a time when Kingfisher is seeking to grow its cargo business in the domestic market while optimising its cost of operations.
IBS officials said that iCargoNet would also help Kingfisher optimise the inventory of its flights and monitor capacity utilisation as well as revenue generated by each flight as the flight builds up and before it takes off.
"Most airlines are now focussing on developing and improving their cargo efficiencies as new lines of business. IBS has a great opportunity here in a situation when airlines are focussing on maximising their cargo revenues," said Akshay Shrivastava, senior vice-president -- Cargo Business World Wide, IBS Software Services.
On the company's inorganic growth plans which have been taking shape for the past six years, Mathews said that IBS was in the process of consolidating its strategic acquisitions since 2002 by undertaking a global integration program for the acquiree companies. "We will be looking at our next acquisition sometime next year," Mathews said.
The company acquired TopAir from EDS (Switzerland) in 2002, Avient Technologies from Honeywell in 2003, Discovery Travel Systems in 2006 and Hotel Booking Solutions Inc in March this year.
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In April this year, IBS solidified its plans to enter the $40-billion global aircraft maintenance, repair and overhaul (MRO) business by acquiring 100 per cent equity in US-based aviation maintenance and engineering (M&E) company Visaer Inc. The acquisition enabled IBS to gain access to Visaer's MRO software system called 'Visaer', and customers like China Southern Airlines Ltd, Qantas Airways, Wood Group Gas Turbine Services and Copa Airlines. Visaer now operates as IBS Technics Inc, a fully-owned subsidiary of IBS Software.
Besides iCargoNet, IBS's other products in its portfolio via the acquisition route include Visaer, AvientCrew for airline crew management, AvientFleet for airline fleet management, and TopAir for integrated flight operations.
The company currently has over 150 customers across airlines, cruise lines and leading oil and gas companies. With over 2,000 people on its rolls, IBS sees 20 per cent of topline revenues coming from airlines and airports operations, one of its six lines of business (LUBs). Airline cargo and logistics bring up another 18 per cent. Other LUBs are airlines passenger services, travel cruise and hospitality management, oil and gas logistics, and ocean transportation management, which the company launched this month out of its Rotterdam operations.
IBS had revenues of about $80 million (Rs 339 crore) in 2007, according to industry estimates. It runs seven software development centres out of Bangalore, Boston, Kochi, Thiruvananthapuram, Rotterdam, London and Washington DC, besides, 13 business centres. Private equity investor General Atlantic invested $60 million (Rs 254 crore) in the company in July last year.