IBM in pact to service Air India

Flag carrier Air India has signed a seven-year information technology (IT) deal worth a little more than $50 million (Rs.228.5 crore) with International Business Machines Corp. (IBM), two executives at the airline firm said.
New York-based computer hardware and technology services firm IBM will implement the enterprise software SAP to automate various processes at Air India, the country’s largest airline by number of aircraft.
It will also help the carrier with IT infrastructure and application support services, said the executives, who did not want to be identified.
An IBM spokesperson neither denied nor confirmed the development, saying, “We do not comment on rumours and market speculation.”
Cash-strapped Air India is majorly revamping operations. IBM will help improve Air India’s operating efficiency and complement its expected entry into Star Alliance, a global grouping of airlines, one of the executives mentioned above said.
“This will also fast track the merger of Indian Airlines and Air India,” he added, referring to a process that began in 2007.
In September, Jet Airways (India) Ltd, the country’s largest airline by passengers flown, also opted for IBM for a 10-year deal for IT infrastructure and application support services, including employee transition, data centre operations, central helpdesk support, server and storage operations, Internet security services, network management, SAP and other operating systems.
31/01/11 P.R. Sanjai/Live Mint

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Categories: Air India Jan 2011