The new company, in which TCG and UA have equal stake in the Rs. 20-crore venture, will focus on development and enhancement of application software supporting the operations of the airlines and its thrust towards customer convenience through improved service made possible with the use of information technology.

UA has four similar software development centres in the US and the venture with TCG being set up in Calcutta will be first such centre to be located outside the US.

Addressing newspersons here on Wednesday, Mr. Bruce Parker, senior vice-president and chief information officer information, UA, said: "With information technology having changed the concept of worldwide air travel, new software products need to be developed that are centred around airline services."

The joint venture will utilise the vast database of UA and other airlines associated with it over the years. UA has a flight network across 28 countries and provides services to 102 domestic and 37 international destinations. Each day it files no less than 2,38,000 passengers in 2,274 flights.

TCG, on the other hands, will offer the joint venture its expertise in software development. Mr. Parker said UA-TCG Software Services alliance has been working since the last two years with the latter helping in the maintenance and development of software.

Regarding the decision to set up the joint venture in Calcutta, Mr. Purnendu Chatterjee, Chairman, TCG, said Sky Tech Solutions will benefit from the "high concentration of knowledge-based workers in Calcutta." Through a large number of software developers will be sourced from Calcutta, " a certain portion will also be sourced from outside as well."