HIT BY the severe recession in the airline industry, Swissair has turned to Indian software professionals to help cut costs and raise profits. Swissair recently moved its revenue accounting section to Bombay because skilled Indian computer professionals cost a fraction of what they would in Switzerland. Revenue accounting -- the calculation of massive amounts earned from and owed to other airlines by the carrier -- is a complicated job that requires skilled computer operators.

A new company, Airline Financial Support Services (India)) Private Ltd, which is owned by Swissair (75 per cent) and the Bombay-based Tata Consultancy Services, has been set up at the Santa Cruz Electronics Export Processing Zone (SEEPZ) in Bombay. Says Burjor P Randeria, AFS president and chief executive officer, "Swissair considered Johannesburg, Karachi and Kuala Lumpur as well, but Bombay won out as it offered the best cost advantages." The infrastructure at SEEPZ -- especially low rents, special customs and tax concessions -- and the availability of professional staff tipped the balance in Bombay's favour, he explains.

Formerly, this accounting was done in each Swissair branch, with flight coupons being shipped to headquarters in Zurich, both as hard copy and by electronic transmission. However, now all flight coupons and cargo airway bills find their way to AFS -- on Swissair flights, three times a week -- where they are entered into a general ledger by data entry operators and Swissair's credits and liabilities are processed. This information is then electronically transferred to Zurich.

As Swissair's Zurich-based revenue accounting system was outdated, new software had to be written by consultants Arthur Anderson and by TCS. AFS officers reckon that by setting up this concern, Swissair will reduce revenue accounting costs by 40 per cent. AFS now plans to expand their staff and take up related jobs for other airlines as well.