Etihad Airways Signs 10-Year Technology Services Agreement with IBM

Etihad Airways has signed a 10-year technology services agreement worth approximately US$700 million with IBM.

The agreement, one of the most important strategic collaborations by Etihad Airways, will provide access to the latest cloud-based technologies and services for the airline, its group companies and equity partners.

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, “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.”

Through IBM’s mobile solutions, developed under the Apple-IBM alliance, the airline will provide enhanced mobile capabilities to its employees and guests. Other solutions will enable airport operations to run more efficiently, which will improve the passenger experience as a result of an enhanced end-to-end process. The agreement will also give Etihad Airways and its equity partners access to IBM’s Watson cognitive technology.

IBM and Etihad Airways will create a joint technology and innovation council in Abu Dhabi to develop more personalised travel solutions using IBM’s global research capabilities and the airline’s industry expertise. 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, Senior Vice President, IBM Global Technology Services, said, “By partnering with IBM in this transformation journey, Etihad Airways is accelerating the move to new technologies such as cloud computing and cognitive. These technologies will help the airline to improve efficiencies and achieve its ambitious growth plans as a globally integrated aviation group.”

Etihad Airways’ current data centre, IT infrastructure, applications and security operations will be migrated to the new data centre in Abu Dhabi, and disaster recovery will be managed at an IBM Cloud data centre in Europe. This approach will allow the airline to scale and manage its IT resources more efficiently, while ensuring business continuity.

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. IBM will manage the entire data centre operation, including individual infrastructure services and IT helpdesk for Etihad Airways.

The collaboration provides a global framework for technology service delivery for Etihad Airways and its Etihad Airways Partner airlines, including Alitalia, airberlin, Jet Airways, Air Serbia, Air Seychelles and Etihad Regional.

Etihad Airways, one of the fastest-growing airlines in the world, carried 14.8 million passengers in 2014, and currently serves 113 passenger and cargo destinations.