Etihad Airways reached a $700 million, 10- year agreement for IBM Corp. to develop cloud-based computer systems to link the carrier and its affiliates’ passenger and airport operations.

IBM will provide the Abu Dhabi-based airline and partners in which it holds stakes with analytics, mobile and security technology, the companies said in a statement. The other carriers being served will include Alitalia, Air Berlin Plc, Jet Airways (India) Ltd., Air Serbia AD, Air Seychelles Ltd. and Etihad Regional.

Etihad’s growth strategy is focused on minority-stake investments in other airlines, with cooperation allowing the partners to reduce unit costs and strengthen bargaining power. The deal with Armonk, New York-based IBM follows Etihad’s joint efforts with the other carriers for raising funding and developing a global customer-loyalty programs.

About 100 Etihad information technology employees will move to IBM, which will also develop a data center in Abu Dhabi.


This article was written by Deena Kamel Yousef from Bloomberg and was legally licensed through the NewsCred publisher network.

Tags: CRM, etihad, ibm
Photo Credit: An Etihad Dreamliner. Etihad Airways