MALAYSIA AIRLINES TO INVEST OVER US$109 MLN IN ERP SOLUTION

PETALING JAYA, July 12 (Bernama) -- Malaysia Airlines will invest more than
RM320 million (US$109.37 million) in a solution to streamline operations and
maximise business efficiency, managing director and chief executive officer
Tengku Azmil Zahruddin said Monday.

The Enterprise Resource Planning (ERP) system, which will be implemented in
phases, will help to centralise all data and boost the airline's ability to
obtain real-time information.

This, Tengku Azmil said, will enable greater cost efficiencies, improve
decision-making and employee productivity as well as optimise cash management.

"The total benefit expected from the project is estimated at over RM120
million (US$37.5 million) per annum," he told reporters after a signing ceremony
with partners HCL Axon and SAP here.

"We do expect to get the full benefit once all the modules are up and
running. We are doing it in phases. We have the finance procurement phase and
the maintenance, repair and overhaul phase," he said.

"It is one integrated system which will speed up and allow us to make better
decisions. We will see that both in revenue and cost saving," he added.

Tengku Azmil said the airline had selected HCL Axon and SAP to integrate its
finance procurement and human resource functions as well as engineering and
maintenance operations at the KL International Airport and Subang Airport over
two phases from 2010 to 2012.

He said the airline would replace many existing standalone legacy systems
with SAP industry-specific solutions and iMRO v4.0, a software product which
builds on, extends and enhances the SAP ERP applications.

The system will manage all maintenance, repair and overhaul functions,
including maintenance planning, engineering operations, quality control and
supply chain.

The scope will cover the MAS fleet, which includes 115 aircraft, 319 engines
and six million parts and the integrated solution will serve about 3,000 users,
including aircraft mechanics.
This phase is planned to be completed by the third quarter of 2012.
The global project involves replacing legacy systems in the areas of finance
and procurement at all Malaysia Airlines offices worldwide, Tengku Azmil said.
This phase is expected to be completed by the second quarter of 2011, he
said.
-- BERNAMA