Published on the 03/04/2025 | Written by Heather Wright
New deals for digital innovation take flight…
Air New Zealand is positioning itself as a testbed for ‘cutting edge’ digital solutions with deals with five companies to ‘reimagine’ operations and customer experience for both itself, and the wider aviation and tourism industry.
The airline has signed a five-year deal with Tata Consultancy Services (TCS) which will see the two companies collaborating on key areas including cloud computing, AI, data analytics and automation, to enhance customer experience, streamline operations and up cybersecurity and data protection.
“These partnerships are not just commercially driven, they are about pioneering new approaches that have global applicability.”
But that deal is just one of several partnerships it has underway – all out of India – with IBS Software, TSI, Cognizant and Accenture teams in India also onboard for a number of digital projects.
Nikhil Ravishankar, Air New Zealand chief digital officer says the airline’s agile approach integrates TCS, IBS Software, TSI, Cognizant and Accenture teams directly into its operations to enable faster decision-making and ‘dynamic innovation’.
He says the partnerships ‘break traditional models of engagement’ moving beyond transactional software development to co-create industry-leading solutions, and have already seen returns.
Core projects include new digital platforms for cargo customers, the re-platforming of Air New Zealand’s loyalty program and ongoing digitalisation to flight operations, engineering and maintenance, and a ‘next generation retail transformation program’.
The airline has long been bullish about its desire to be a ‘leading digital airline’ and has a track record of digital innovation – it was the first airline to introduce check-in kiosks, self-service bag drops for international travel and was an early adopter of cloud computing.
Recent years have seen it embracing AI, and rolling out a number of offerings including its much touted ‘Oscar’ AI chatbot and an ‘airband’ wearable wristband for unaccompanied children which enables guardians to have more visibility of the child’s journey.
It also has plans for an electric aircraft, due to take to the skies in a demonstration from this month.
The new deal with TCS will ‘explore’ opportunities for digital transformation, innovation and operational efficiency within the airline sector, at a time when airlines have been struggling following aircraft groundings due to additional engine maintenance requirements and rising costs.
Air New Zealand recorded a decline in both earnings before tax and net profit for the first half of FY2025, ending December 31. Earnings dropped 16 percent from $185 million for the same period a year earlier, to $155 million, while profit was down 18 percent to $106 million.
Alongside improved customer experience and increased digital capabilities, Air New Zealand says it’s looking to drive operational efficiencies across areas including fleet management, crew scheduling and ground services.
The airline has more than 600 application – a portfolio it is looking to streamline by integrating AI-driving automation and cloud technologies into critical airline functions.
“This will drive innovation across cargo service, disruption management, retail offerings, maintenance systems and crew operations,” Tata says.
Workforce transformation will also be a key focus with large-scale upskilling of Air New Zealand’s workforce planned to upskill teams in AI, cybersecurity and digital engineering.
Air New Zealand chief executive Greg Foran, says the two companies have been working together since September 2024 and Air New Zealand has already seen benefits, though he didn’t provide any specifics.
“Going forward, TCS will be an instrumental partner in helping us deliver our Cargo Digital Transformation and improvements to our digital retail capability,” Foran says.
TCS’ other airline deals include an announcement late last year of a major IT transformation with Air France-KLM, to move its infrastructure to the cloud.
It was also behind Singapore Airlines airline operations solution, which was billed as ‘a first-of-its-kind’ when it launched in 2018.
Meanwhile, Ravishankar says the wider work with the Indian partners aims to ‘redefine what is possible’ in the aviation sector.
“For our partners, New Zealand offers a unique opportunity to test, refine and deploy digital solutions at scale, and Air New Zealand’s ability to move quickly and experiment makes us an ideal collaborator,” he says.
And for Air New Zealand? Well, Ravishankar says India’s investment in education and digital innovation over the years is paying dividends, and the airline is keen to benefit from that expertise and growth.
Plus, he says, there’s a strong cultural alignment between the two countries.
“Both nations thrive on innovation and are leveraging technology to overcome unique challenges.
“While New Zealand must navigate the constraints of being a small, geographically remote nation, India is rapidly evolving as a high-growth economy and global technology powerhouse. That common DNA of innovation makes collaboration a no-brainer,” he says.
“These partnerships are not just commercially driven, they are about pioneering new approaches that have global applicability.”
