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Let's Move the World, Together

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Let's Move the World, Together let’s move the world, together SITA GROUP ACTIVITY REPORT 2018 LET’S MOVE THE WORLD, TOGETHER LET’S MOVE THE WORLD, TOGETHER 2 SITA | GROUP ACTIVITY REPORT 2018 LET’S MOVE THE WORLD, TOGETHER CONTENTS SITA BOARD DIRECTORS 4 CHAIR’S STATEMENT 6 COUNCIL PRESIDENT’S STATEMENT 10 SITA COUNCIL REPRESENTATIVES 14 SITA MEMBERS 16 CHIEF EXECUTIVE OFFICER’S REPORT 18 SITA AT 70 24 BUSINESS REVIEW 26 SITA | GROUP ACTIVITY REPORT 2018 3 LET’S MOVE THE WORLD, TOGETHER SITA BOARD DIRECTORS THE SITA BOARD IS TASKED WITH SUPERVISING THE ACTIVITIES OF THE COMPANY AND ITS SUBSIDIARIES TO ENSURE THE EFFECTIVE OPERATION OF THE GROUP 4 SITA | GROUP ACTIVITY REPORT 2018 LET’S MOVE THE WORLD, TOGETHER Barbara Dalibard Dr Omar Jefri SITA CEO Board Chair Sonia Barrière Emese Békéssy Elizabeth Haun Laurent Jossart Board Vice-Chair Christoph Kleinsorg Sankar Narayan Roland Schuetz Damian Scokin A.T. Srinivasan Richard Steer Eash Sundaram Thomas Woldbye SITA | GROUP ACTIVITY REPORT 2018 5 LET’S MOVE THE WORLD, TOGETHER KEEPING THE WHEELS OF THE AIR TRANSPORT INDUSTRY IN MOTION CHAIR'S STATEMENT Dr Omar Jefri 66 SITASITA | GROUP | GROUP ACTIVITY ACTIVITY REPORT REPORT 2015 2018 LET’S MOVE THE WORLD, TOGETHER “SITA has successfully worked at the Q. WHAT WERE THE BOARD’S heart of the air transport community MAIN TAKEAWAYS DURING 2018? for seven decades. The organization has always played a major role in A. The SITA Board recognizes 2018 as another very good year for SITA. Our moving passengers around the world, role on the Board includes overseeing providing IT and communications SITA’s financial and operating results, services that keep the wheels of the air and we were pleased with SITA’s accomplishments through the year. transport industry in motion.” The last two years have shown SITA’s return to growth, as outlined in the CEO Report. In 2018 we witnessed good financial performance, along with important ongoing operational improvements throughout SITA’s organization, as part of SITA’s transformation. The Board believes it is to SITA’s credit This ensures a close understanding that, through the ability to constantly of the needs and ambitions of our transform, SITA remains as relevant Q. PLEASE TELL US ABOUT community and SITA’s Members today as when it was founded to SETTING THAT STRATEGIC and customers, and it enables us to deliver global communications for the DIRECTION? appreciate the strengths of SITA’s fledgling air transport industry. A. SITA’s strategic direction is set out business plan. In fact, SITA has successfully worked in its Long-Term Business Strategy. The context of that plan is a changing at the heart of the air transport The Board plays a key role here, market. The industry is seeing the community for decades, with 2019 working with SITA’s leadership team emergence of new and intense being its 70th anniversary year. and the SITA Council to help drive the competition. This includes some of the development and implementation of industry’s biggest players. As we make clear in this Activity the SITA strategy. Report, SITA has always played a In the face of this, setting the right major role in moving passengers In addition, each year we approve the strategic direction for SITA is critical. around the world, providing IT and three-year rolling business plan, which There are excellent opportunities for communications services that keep the sets out the organization’s 2019-2021 SITA to grow. The Board is pleased to wheels of the air transport industry in priorities. see that the Three-Year Business Plan motion. In doing this, we are helped by the aims for an annual growth rate which Over the years, air transport has fact that SITA Board Members have compares well with the overall annual become increasingly complex and experience and expertise spanning growth rate of SITA’s target markets. global. And in the IT space, the industry aviation, technology, operations, legal, CHAIR'S Those growth markets for SITA is seeing far more competition than financial and business transformation. are focused at airports and around ever before. So SITA has done well to aircraft. They include airport remain a leading player in its chosen management, baggage processing, markets. border management, and aircraft STATEMENT communications. The SITA Board also believes that the last two years have been extremely important in enabling SITA’s turnaround. They have put in place strong foundations on which to build for SITA’s future, guided by a clear strategic direction. SITA | GROUP ACTIVITY REPORT 2018 7 LET’S MOVE THE WORLD, TOGETHER “The air transport industry needs to work together to resolve common concerns and Q. WHAT WILL THAT imagine new solutions. For this reason, SIMPLIFICATION ENTAIL? SITA has never been more relevant and A. In 2018, the SITA Board and SITA Council approved an important never better positioned to help global air transition program called ‘SimplySITA’. transport continue to grow and prosper.” The purpose of the program is to bring important changes to SITA’s structure and how the business of SITA is conducted. SimplySITA aims to simplify SITA’s Q. WHAT DOES THE BOARD Q. WHAT IS THE BOARD’S VIEW structure and reinforce SITA’s position SEE AS BEING MOST CRITICAL OF THE TRANSFORMATION as a strong provider of connected TO SITA’S GROWTH AND TAKING PLACE AT SITA? IT products and services to the air SUCCESS? transport industry. At the same time, A. In addition to SITA’s Long-Term it will retain SITA’s governance and A. It is critical that SITA stays focused Business Strategy and business unique position of being wholly owned on its strategic direction. Importantly, plan, the SITA Board has over- by the industry. this includes building on the strengths sight of the company’s ongoing of SITA people, equipping them with transformation, across the areas of the The envisioned changes to the essential skills for today and the years customer journey, delivery, portfolio structure will be in line with SITA’s ahead. This is a 2019 priority, which transformation and culture. Long-Term Business Strategy, taking is seen as ‘A Year of Learning’ for the into account the changing technology We see SITA’s continued organizational SITA organization. landscape in which applications and transformation across all of these networks need to be more and more Let me single out two of the other areas as essential for the company’s integrated. The plan is to reinforce critical priorities for the year ahead, strategy and business plan to succeed, SITA’s position as an industry which are part of SITA’s business for SITA to meet its growth goals and innovator, as well as its ability to adapt plan. They are the simplification and satisfy the requirements of customers. to business and regulatory changes transformation of SITA’s portfolio, across the world. The changes introduced over the past and innovation. Both are key to SITA’s two years are very encouraging. They continued growth and future success. SimplySITA aims to enable SITA to have been meeting – and in many cases be an agile partner. It will deliver a The Board sees the good progress exceeding – expectations. stronger SITA, a sustainable SITA and already made in restructuring and a simplified SITA. We have noted an increasing Net simplifying SITA’s product and solution Promotor Score, helped by a strong portfolio. The approach very much rise in on-time project delivery, and centers on SITA’s community role, successes in streamlining software addressing key trends and helping to production. tackle the painpoints that the industry faces. The Board has been impressed with the progress being made, including SITA’s community role continues to be SITA’s own operational efficiency. The reflected in its approach to innovation CEO Report explains this further too. The SITA Board supported (see page 18). several areas of focus for innovation. As a priority for SITA, we see this There is always much more to do – and as delivering great value to the air demanding targets for the future have transport community – a key SITA been agreed. But there is a direction objective. and drive behind SITA’s strategy and transformation with an emphasis on key metrics for success and the further simplification of SITA. 8 SITA | GROUP ACTIVITY REPORT 2018 LET’S MOVE THE WORLD, TOGETHER THANK YOU BOARD CHANGES Thank you to my fellow SITA Board Emese Békéssy of Cargolux, Sonia Members, the SITA Council and SITA’s Barrière of Air France-KLM and senior team for their leadership Richard Steer of Air Canada were all and energy. And thank you to SITA’s appointed as Member Directors to the people. The Board recognizes Board in 2018. their commitment to delivering the 1 technologies and services that enable Patrick Naef and Sankar Narayan billions of people worldwide to travel stepped down from the Board in 2018. by air, safely and with increasing ease. 1Sankar Narayan stepped down effective 31 December 2018. Q. YOU MENTIONED KEY Q. FINALLY, WHAT ARE TRENDS IN THE INDUSTRY? YOUR REFLECTIONS AS SITA CELEBRATES ITS 70TH IN A. The industry is seeing more growth 2019? in passenger numbers, stable margins and 10 years of net post-tax profit. A. I believe the 11 airlines who Some slowdown in growth is likely, but founded SITA in February 1949 had long-term the pressure on capacity great foresight. They recognized that and passenger flow will build. sharing communications resources would provide cost efficiencies and SITA is closely following these trends, global standards, to help the industry introducing technology that is critical grow (see page 24). to handling more passenger numbers.
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