IBM Corporation has signed a contract with Etihad Airways to improve the airline's booking system, and provide better customer analytics and weather production software.
IBM has confirmed to serve an airline, Etihad Airways, on Tuesday, in an information technology agreement worth $700,000,000 over a time span of ten years that intends to enhance the airline’s reservation systems and decrease its network operating costs. The deal between the New York based company and the Middle Eastern flag carrier includes analytics of client data and the establishment of technology that could forecast weather conditions to organize the air company’s flights better at its base in Abu Dhabi.
IBM News revealed that around 100 Airline’s workers would be moved to the Big Blue, which would also be developing and building a new datacenter in UAE’s capital, Abu Dhabi. The contract is also covering Etihad’s eight partner airlines in which it has purchased minority shares. An official of Etihad Airways, Robert Webb, told the media, “We want to invest in innovation. We want technology to be pervasive throughout the business.”
IBM news today reported that the state-owned airline signed the agreement with the company following a set of similar contracts with suppliers, such as Panasonic Avionics, SAP SE, and Sabre Holdings, Mr. Rob stated. He further added that Etihad has discussed facilities and products for all the airlines in which it owns minority shares to reduce costs.
IBM Breaking News affirmed that Etihad Airways has disbursed investments recently by buying minority shares in other air companies and supporting their economic needs. Up till now, it has made non-controlling investments in eight carriers, including Jet Airways (India) limited, PLC, German Air Berlin, and Italian airline Alitalia.
IBM took on a similar contract with Deutsche Lufthansa AG in November 2014 worth €1,000,000,000 ($114, 000, 0000), which the European Airline stated would help it save costs worth €70,000,000,000 per annum. An official of IBM, Martin Jetter, stated, “This is a movement across the industry. You need an IT infrastructure that’s available around the world and the applications and technology that allow the airline to find out the preferences of their guests.”
In December, the technology giant stated that 2014 proved to be a successful year for its cloud operations and it is intending to increase the number of customer data across the world by 25%. Etihad carried 14,800,000 passengers in 2014. It is currently serving 113 passenger and cargo endpoints.
IBM’s initiative would improve its image in the competitive world but it also ties the company with more responsibilities. The deal would provide mutual benefit to both parties.
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