Qantas intensifies IT deployment to slash $1.5 billion

 chief executive Alan JoyceAustralian carrier Qantas is planning to save $100 million this year with an IT transformation project under its grand plan to cut $1.5 billion in costs over three years, according to chief executive Alan Joyce.

Joyce said technology will be the key driver of the airline's new cost-cutting programme.

He said the airline needed to use IT more efficiently to effect more savings of which $100 million in is being targeting in this year with the IT transformation project.

He added that the programme would kick off with $500 million in savings for the 2009-10 financial year.

He said the focus of the programme would be improvement of efficiencies across a range of areas including sales and distribution, fuel conservation, aircraft utilization and schedule and procurement.

He added that new technologies would be introduced to realise the target citing Jetstar's use of SMS technology for boarding passes as an example. Jetstar is Qantas' budget airline subsidiary.