ARMONK, N.Y., - 21 Sep 2010: Jet Airways, India's premier international airline, and IBM (NYSE: IBM) today announced that the companies have signed a strategic ten-year business transformation and information technology (IT) services agreement. Valued at US$62 million, the agreement is a step towards Jet Airways' journey of technology led business transformation, which will help the airline achieve significant growth by aligning the company's IT with business strategy.
Jet Airways plans to leverage IBM's domain knowledge of the global airline industry and its technology leadership to meet the group's business transformation objectives. As part of the deal, IBM will provide cutting-edge technology solutions to transform the airline's business areas such as airport operations, direct distribution and frequent flier programs. This engagement will help Jet Airways improve and integrate its IT systems to deliver a highly differentiated customer experience and improve its operational efficiency.
"Constant innovation to stay ahead of industry growth has been Jet Airways' operating philosophy since it commenced operations in 1993," said Nikos Kardassis, Chief Executive Officer, Jet Airways (India) Ltd. "We are delighted to partner with IBM, the world's leading IT services company, and see this as an exciting opportunity to use IBM's technology to lead business transformation in the Indian aviation sector and augment growth. This association will enable us to focus on our core business and improve our operational efficiencies, besides delivering a seamless customer experience. India, as a country, will take a leading edge position in delivering innovative ideas and solutions in the Global Aviation terrain," remarked Mr. Kardassis.
IBM will support Jet Airways with IT Infrastructure and application support services including employee transition, data center operations, central helpdesk support, server and storage operations, internet security services through the use of Tivoli suite, network management, SAP and other operating systems.
"The agreement with Jet Airways is a significant milestone for IBM in the aviation industry," said Sameer Batra, Vice President, Distribution Sector, IBM India/South Asia. "Jet Airways will have access to industry expertise and knowledge, which are essential for sustaining growth and leadership in the competitive global market."
Commenting on the relationship with Jet Airways, Ashish Kumar, General Manager, Global Technology Services, IBM India/South Asia, said, "This strategic services deal with Jet Airways will herald a new era in the Indian aviation industry. It will enable the airline to enhance its business value and gain competitive advantage through innovative use of technology. IBM will bring its global experience and expertise in this industry to deliver services and solutions to help Jet Airways achieve its mission to innovate and lead as it continues to grow and expand internationally."
The contract was signed in June 2010.
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About Jet Airways
Jet Airways currently operates a fleet of 90 aircraft, which includes 10 Boeing 777-300 ER aircraft, 12 Airbus A330-200 aircraft, 54 next generation Boeing 737-700/800/900 aircraft and 14 modern ATR 72-500 turboprop aircrafts. With an average fleet age of 4.99 years, the airline has one of the youngest aircraft fleets in the world. Flights to 65 destinations span the length and breadth of India and beyond, including New York (both JFK and Newark), Toronto, Brussels, London (Heathrow), Johannesburg, Hong Kong, Singapore, Kuala Lumpur, Colombo, Bangkok, Kathmandu, Dhaka, Kuwait, Bahrain, Muscat, Doha, Abu Dhabi, Dubai, Jeddah, Sharjah, Riyadh and Dammam.
About Jet Airways Konnect
Jet Airways Konnect is Jet Airways' all-economy service on key domestic routes, designed to meet the needs of the low-fare segment with value-for-money fares. Jet Airways Konnect links seven major metros- Mumbai, Delhi, Chennai, Bengaluru, Hyderabad, Ahmedabad and Kolkata - with several destinations across India, operating over 200 flights daily. Konnect Select' is a premium economy product introduced on certain Jet Airways Konnect flights. This new front cabin class features wider and more comfortable seats, with a 40 inch seat pitch. The services include complementary in-flight reading material, a welcome drink, and complimentary hot meals on-board.
JetLite is a wholly owned subsidiary of Jet Airways India Ltd. and was acquired by Jet Airways in April 2007. Positioned as an all-economy, no-frills airline, JetLite operates a fleet of 22 aircraft, which includes 17 Boeing 737 series and 5 Canadian Regional Jets 200 Series, aircraft. The airline flies to 25 domestic destinations and 2 international destinations (Kathmandu and Colombo), operating over 110 flights a day, on average. Jet Airways, Jet Airways Konnect, its all-economy, no-frills service, and JetLite have a combined fleet strength of 112 aircraft and operate over 500 flights daily.
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