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Air New Zealand Takes Off With PeopleSoft

Air New Zealand Takes Off With PeopleSoft
First phase implementation smooth and on schedule

Air New Zealand has implemented the first phase of its enterprise application software programme – Connect, comprising PeopleSoft Financials and Procurement, part of the PeopleSoftEnterprise product family. The solution will streamline processes, provide greater visibility into financial data and reduce supplier-related costs.

More than 1,100 Air New Zealand staff around the globe are now using the PeopleSoft solution, including general ledger, accounts receivable, accounts payable, billing, cash management, budgeting and forecasting, workflow as well as purchasing and eProcurement.

All new applications integrate fully with industry specific requirements including IATA.

David Mackrell, VP Finance Air New Zealand, says that the PeopleSoft solutions, together with new business processes, will significantly streamline the way the airline works with its suppliers, driving down supplier-related costs and eliminating inefficiencies.

“We believe this release, which was smooth and on schedule, will result in better reporting, better cost efficiency and better decision support for Air New Zealand.

“Implementing these initial modules is the first step towards delivering Air New Zealand a robust, state-of-the-art financial tool to support decision-making.

“The widest impact is the introduction of electronic purchasing. Capturing and reporting spend more accurately means that we are in a position to improve our ability to manage our contracts with suppliers. This is the process that has the greatest potential to return financial benefits in terms of cost reduction,” says Mr Mackrell.

PeopleSoft eProcurement allows Air New Zealand to control spending and lower acquisition costs as well as improving supplier relationships.

Air New Zealand is managing the implementation of the Connect Programme assisted by PeopleSoft. Chris Alderson, Programme Director for Connect says, “Strategically Air New Zealand must deliver more efficient internal processes in order to lower our cost base and compete effectively across our network. PeopleSoft has assisted our efforts by providing effective, out of the box processes on a superior architecture.”

David Webster, Managing Director PeopleSoft Australia and New Zealand, says that PeopleSoft’s Pure Internet Architecture™ delivers a low cost infrastructure with flexibility to handle future changes within Air New Zealand.
“PeopleSoft applications optimise interactions, manage business processes, analyse business activities to anticipate opportunities and reduce costs, adding up to more profitable relationships”, says Mr Webster.

The next stage of the Connect Programme is the rollout of airline profitability, which is due to go live mid-December, followed by payroll, project accounting, assets and rolling forecasting over the next six months.


About PeopleSoft

PeopleSoft (Nasdaq: PSFT) is the world’s second largest provider of enterprise application software with 12,000 customers in more than 25 industries and 150 countries. For more information, visit us at

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