This helped passengers to easily check-in, get boarding pass and luggage tags and track their flights without need for human interaction. This considerably reduced the cost of hiring employees to do these operations at airports.
Also, Air Canada reduced the cost of its operations by utilizing Information Systems once more in 2007 when it brought the concept of Electronic Boarding Passes. This allowed passenger check-ins through mobile devices as well reducing the use of kiosks only. Here, the use of their mobile applications and website kicked in. this allowed the company to transit its passengers on the go and also reduced the time spent on security checks. Mobile phone applications were introduced by the company in 2009. It has all the functionalities of company's website and kiosks. It also allowed passengers to rebook the cancelled flights online through website or mobile application.
These innovations of information system are just some of the examples of how IT has been used by Air Canada to effectively support its core functions.
2. Challenges of Decentralization and Structural Solutions.
Air Canada had a centralized IT department till the end of 2002. This department was responsible to provide IT support to all the functions of the airline. For this purpose, each functional department was assigned a representative within IT department who was responsible to carry out IT tasks for that department. These tasks included requirement gathering, communication and liaison, implementation, troubleshooting etcetera. The representative was responsible to implement the solutions for all types of needs; be it local or company-wide. This type of centralized process created issue in completion of IT tasks. The system became slow to respond because the line of action was very long.
This led to the decentralization decision in 2003. The representatives were deputed in their own business departments where they got more chances to interact with the business directors and see the operations to access IT requirements.