Etihad Airways and IBM have teamed up in a ten-year technology services agreement, worth USD700 million. The deal aims at improving the airline’s operations and security.
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Etihad conveyed 14.8 million travelers in 2014 and serves 113 traveler and payload destinations around the world.
A part of the deal is a cloud services contract that was signed in late September that will be one of the most strategic collaborations by Etihad and a big step in developing a could data center in Abu Dhabi.
James Hogan is now the Chief Executive Officer (CEO) of Etihad Airways.
IBM will provide the Abu Dhabi-based airline and partners in which it holds stakes with analytics, mobile and security technology, the companies said in a statement.
Through IBM’s mobile solutions, developed under the Apple-IBM alliance, the airline will provide enhanced mobile capabilities to its employees and guests. The council will focus on value creation for Etihad Airways and its guests, as well as bringing technological innovation and benefits to Abu Dhabi and its people.
Martin Jetter an IBM senior vice president of Global Technology Services said the agreement was a movement across the industry.
The CITO at Etihad said the airline wanted to invest in new innovation and wants technology to be present throughout its business.
It includes plans for a new cloud data centre in Abu Dhabi.
IT providers say new technologies could include better luggage drops with label printing and self-boarding gates based on data generated from check-ins, enable airlines to order, replace and maintain aircraft components more efficiently, better estimate travel times, and better manage loyalty programmes.
As part of the agreement, around 100 Etihad Airways information technology employees will transition to IBM, where they will have access to further IT skills development opportunities.
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IBM will manage the entire data centre operation as well as IT helpdesk services for the airline. The state-owned airline with equity stakes in Alitalia and Air Berlin among others chose IBM to move its IT infrastructure to cloud-based platforms to serve its clients better, a statement said.
