Last updated: 10:04 AM ET, Tue October 13 2015

Etihad Signs $700 Million Technology Deal

Airlines & Airports | Rich Thomaselli | October 13, 2015

Etihad Signs $700 Million Technology Deal

Etihad Airways might be at war with U.S. airlines over the Open Skies agreement, but it has no issue doing business with American companies.

Etihad and IBM today announced a 10-year technology services agreement worth approximately $700 million, allowing the airline to enhance guest experience, develop world-class infrastructure and security, and improve efficiency.

The agreement will provide access to the latest cloud-based technologies and services for the airline, its group companies and equity partners. IBM will deliver a range of secure and efficient technology services, allowing Etihad Airways and its partners to transform their IT infrastructure into global, flexible and agile cloud-based platforms to better serve their guests and employees.

The agreement includes plans for the creation of a new cloud data centre in Abu Dhabi.  The centre, to be developed and operated by IBM, will be one of the most sophisticated technology facilities in the Middle East.

James Hogan, Etihad Airways’ President and Chief Executive Officer, said in a statement: “This is a long-term, strategic partnership which will allow Etihad Airways and its partners to harness the latest technologies as we deliver our award-winning services. This is a game-changing agreement for Etihad Airways, for our partners and employees, and for Abu Dhabi.”

IBM was selected due its global reach, its experience and alignment with Etihad Airways’ technology and innovation strategy of deploying cloud-first initiatives to simplify its technology systems, while offering greater capabilities for lower operational costs, Etihad said.

“By partnering with IBM in this transformation journey, Etihad Airways is accelerating the move to new technologies such as cloud computing and cognitive,” Martin Jetter, Senior Vice President, IBM Global Technology Services, said.

“These technologies will help the airline to improve efficiencies and achieve its ambitious growth plans as a globally integrated aviation group.”


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