Etihad, IBM sign $700-M tech deal

MANILA - Etihad Airways and IBM have entered into a 10-year technology services agreement worth approximately $700 million.

The deal aims to provide Etihad with world-class infrastructure and security, and improve efficiency through IBM's technology services.

The agreement includes plans for the creation of a new cloud data center in Abu Dhabi, which is envisioned to be one of the most sophisticated technology facilities in the Middle East.

“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," said James Hogan, Etihad Airways president and chief executive officer.

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 data center operation, including individual infrastructure services and IT help desk for Etihad Airways.

“This landmark agreement, a fundamental part of our technology and innovation strategy, will bring us a global IT delivery platform that is secure, resilient and future-ready for Etihad Airways’ companies and equity partner airlines," Robert Webb, Etihad Airways’ chief IT officer said.

In 2014, Etihad Airways carried 14.8 million passengers.

source: www.abs-cbnnews.com

Etihad Airways enters expanded codeshare deal with Air France-KLM

MIAMI - Etihad Airways has reached a deal to deepen its relationship with Air France-KLM and separately has agreed to sell its stake in Aer Lingus Group Plc, Etihad's Chief Executive Officer James Hogan said in an interview Sunday.

Etihad and Air France-KLM will share codes on more flights starting this year, opening more European cities to the Abu Dhabi-based airline's customers, Hogan said on the sidelines of the International Air Transport Association's (IATA) annual meeting. The airlines have yet to finalize terms of the deal.

Hogan added that Etihad will sell its 4.99-percent stake in Aer Lingus, the Irish flag carrier, in a potential takeover bid by British Airways-parent International Airlines Group.

The moves reflect Etihad's strategy to grow its route map through airline partnerships. With codeshares on French domestic flights imminent, Etihad also is looking to add destinations via codeshares with Philippine Airlines, Garuda Indonesia and Malaysia Airlines, Hogan said.

"We're keen to maintain a relationship with (IAG). Indications are that they're interested in doing so too," Hogan said.

Kevin Knight, Etihad's chief strategy and planning officer, said in the same interview that Etihad hopes to expand its codeshare with Air France-KLM "as broadly as possible."

Etihad currently lists its flight code on nine Air France cities and 21 KLM destinations.

Hogan said sharing frequent-flier rewards would be the next step in the airline's partnership with Air France-KLM. It has not discussed or considered taking an equity stake in the European carrier, although saying this would never happen is "not possible," Hogan said.

Across the Atlantic, Knight said Etihad does not have plans to introduce new service to the United States for 24 months. The decision to focus on existing U.S. routes contrasts with competitors Emirates and Qatar Airways, which have announced new flights to seven U.S. cities this spring.

Recent expansion of Gulf-carrier service to the United States has caused tensions with U.S. airlines to boil.

U.S. airlines say their Gulf competitors have received more than $40 billion in subsidies from the United Arab Emirates and Qatar, which has allowed them to add excess capacity on key routes, drive down ticket prices and steal market share.

The Gulf airlines deny the claims. Etihad said it is required to repay loans - not subsidies - to its sole shareholder, the government of Abu Dhabi.

source: www.abs-cbnnews.com