FRAMINGHAM (08/18/2000) - Amadeus Global Travel Distribution LLC last week finalized a 10-year IT deal with British Airways PLC, marking the computer reservations system's entrance into the aviation IT market.
The two companies will build a new information technology support and development center at Heathrow Airport in London, which will operate British Airways' reservations, inventory and departure control systems. Madrid-based Amadeus will also build a new generation of passenger management systems for the airline industry.
British Airways is scheduled to transfer to Amadeus' reservations system next April, and plans to make the full IT transfer starting October 2001 and ending January 2002. The deal and the technology that comes from it have paved the way for Amadeus to provide IT systems for another 80 international airlines that run on hosted and transaction processing facility (TPF) applications provided by British outsourcer Speedwing.
Amadeus expects the BA deal to earn it up to 600 million euros (US$544 million) in revenues over 10 years. Amadeus is the dominant computer reservations system outside the U.S. and the IT outsourcing marks a significant departure from its traditional customer service, e-commerce roots.
"This agreement with British Airways marks the beginning of a significant new business stream for Amadeus," said Hans Jorgensen, Amadeus' vice president of partners and providers strategy.