Mercator buys tikAERO to extend distribution business

 In a statement issued by Emirates Group this morning the company says it will now offer world-class, fully functional, flexible and cost effective passenger service and distribution solutions to hybrid, regional, low-cost and start-up airlines worldwide.

The tikAERO system is built on latest technology systems architectures using Microsoft Technologies,which should enable easy configuration, fast multi-language user interface changes and simplified end user training and support.  The product is capable of evolving with ever-changing business models, markets and passenger demands of any growing airline.
 
Patrick Naef, Divisional Senior Vice President Emirates Group IT, stated:  “Currently used by 19 airlines around the globe, tikAERO is better, smarter, faster and more efficient than anything on the market. It’s built by staff with airline experience, for airlines.  It will help airlines to significantly lower costs by minimising distribution costs, increase their efficiency and lower training efforts. In today’s market where airlines are posting significant losses, this product offers enticing rewards for cutting costs, increasing flexibility and improving long term economic efficiencies and overall net profits.”

Roland Heller, Managing Director of TIK Systems explains: "This acquisition by Mercator will prove a winning formula for airlines seeking a competitive, cost-effective and integrated turn-key solution that includes electronic ticketing and which supports a wide range of distribution channels.  tikAERO customers will have an added value through Mercator's global reach and cutting edge technology and now with the backing of the Emirates Group, our team is really excited that the hard work and the full potential of the system will be realised.”

Patrick Naef added: “This is a really exciting moment for the history of Mercator with our first major acquisition.  Our current passenger services portfolio, Jupiter, is rapidly creating a reputation for being one of the most complete and integrated solutions in the market for medium to large network carriers.  With the acquisition of tikAERO, we are now able to address a whole new segment of the market.  We can manage the needs of an entire airline community covering all shapes, sizes and business models. This strategic move underpins Emirates Group’s commitment to further grow the Mercator business and to strengthen its position as one of the leading IT solution providers for the travel and transportation industry.”

“Unlike legacy system implementations, we can offer a faster and more efficient implementation and customisation process providing cost benefits in terms of lower implementation fees and lower internal project-related costs for the carrier,” said Naef.

With Mercator's already expansive global reach, wide range of consulting services and the ability to integrate existing products such as SkyChain air cargo management, RAPID revenue accounting and CRIS frequent flyer solution, this acquisition offers a unique choice of solutions and services across the airline industry.

The package includes a modern end-to-end customer-centric airline management solution, including web booking engines for consumers, travel agencies, corporate accounts and mobile devices, as well as connectivity with all major Global Distribution Systems.  The system is fully IATA e-ticketing compliant, but can be equally adopted by non-IATA ‘ticketless’ low-cost airlines, therefore combining the best of distribution worlds.

tikAERO integrates key functionality to efficiently manage airline passenger services. This includes applications for inventory management, multi-channel reservation, yield and revenue management, departure control, weight and balance, electronic ticketing, revenue accounting, code-share, interlining, crew management, flight control and real-time reporting to monitor business operations.

It has been specifically designed to suit hybrid environments and can be deployed much easier and faster than legacy passenger service solutions.  Hybrid functionality refers to an increasing sector of the airline market that is moving from a pure low-cost model to a model where there is limited distribution through global distribution systems, interline partnership agreements with airlines and the use of industry ticketing standards defined by the airline trade body IATA.

This announcement follows the Emirates Group’s recent posting of record profits for the 2009-10 period, up 248% from the previous year to AED 4.2 billion (US$ 1.1 billion). It is a strategic acquisition in direct response to need for a fully integrated, long-term passenger service solution that can be tailored specifically to any airline’s requirements.

Mercator will establish a new office in Bangkok to which all TIK Systems’ staff will transfer. This office will provide a new base for Mercator’s product development.

  Pictured after the signing ceremony are, left to right: Patrick Naef, Divisional Senior Vice President Emirates Group IT, Roland Heller, Managing Director of TIK Systems and Nigel Hopkins, Executive Vice President, Finance and Accounts, The Emirates Group.