Etihad Announces $700 Million Deal with IBM for New Booking System and Mobile Solutions
Etihad Airways and IBM announced a wide-ranging deal that will provide it and the carrier’s ten partner airlines in which it owns minority stakes a new booking system. The deal, which aims to lower overall technology costs, is valued at $700 million over ten years.
The agreement will also provide Etihad with a new data center in Abu Dhabi, which will be developed and operated by IBM. Approximately 100 Etihad employees will be transferred to IBM as part of the transaction.
IBM will bring its mobile solutions, developed as part of the Apple-IBM partnership, to the project, which will give employees and passengers greater mobile capabilities. IBM is also making IBM’s Watson cognitive technology available through the transaction.
The deal with IBM “will bring us a global IT delivery platform that is secure, resilient and future-ready for Etihad Airways’ companies and equity partner airlines,” said Robert Webb, the airline’s chief information officer.
Etihad carried 14.8 million passengers in 2014 and serves 113 destinations. Its partner airlines include Alitalia, Air Berlin, Jet Airways, Air Serbia, Air Seychelles, and Etihad Regional.
IBM announced a similar transaction with Lufthansa last year.
(Photo: Accura Media Group)