Air NZ signs up PeopleSoft for major systems overhaul

By ADAM GIFFORD

Air New Zealand has signed up software vendor PeopleSoft for a $37 million overhaul of its corporate software systems.

The project covers finance, human resources, payroll and procurement and replaces systems from PeopleSoft's main rivals Oracle and SAP.

Air New Zealand chief executive Ralph Norris said the company expected to save several million dollars a year from direct cost reductions, decommissioning old systems and improved allocation of resources.

"Upgrading our ageing systems infrastructure will immediately improve our ability to monitor and control expenditure, access key performance information and improve reporting terms of accuracy, timeliness and flexibility," Norris said.

Work has already started on a two-month design phase.

Although the project scope and costs are still to be determined during this phase, it is estimated the entire project could cost $37 million over six years including software, hardware and all related costs.

Air New Zealand said PeopleSoft was selected because its technology was in line with Air New Zealand's long-term strategic direction for information technology.

Peoplesoft Australia and New Zealand managing director David Webster said Peoplesoft's internet architecture meant the applications could be accessed through a standard web browser from anywhere in the world.