Etihad signs high-flying $700M deal with IBM

UAE’s Etihad Airways has signed a 10-year $700 million deal with IBM for a range of technology services that will transform its IT infrastructure to better serve guests and employees.

The transformational agreement will provide access to the latest cloud-based technologies and services for the airline, its group companies and equity partners, thus enabling better service to their guests and employees.

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 guest 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.

The agreement also includes plans for the creation of a new cloud data centre in Abu Dhabi, which will be developed and operated by IBM.

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.

Furthermore, 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.

Robert Webb, Etihad Airways’ chief Information and Technology officer, said: “This landmark agreement will bring us a global IT delivery platform that is secure, resilient and future-ready for Etihad Airways’ companies and equity partner airlines.”