EDS today announced add-on, renewed and new contracts valued at more than $70 million for information technology (IT) services with global and regional air transportation carriers in the US, SA and Europe.
As the world`s largest operator of airline reservations systems, EDS`s proven airline solutions support a full range of airline operations. As the air-travel industry grows increasingly complex, EDS`s innovative solutions can simultaneously provide air carriers with the programming to enhance security initiatives and increase the ease of passenger processing.
Today`s announcements, financial terms of which were not disclosed, include:
* A six-year renewal with America West Airlines, the nation`s second largest low-fare airline and the eighth largest overall. EDS will continue to provide mission-critical telecommunications connectivity and the Shared Airlines Reservations System (SHARES), which supports service to 93 destinations throughout the US, Mexico and Canada. EDS has provided IT services for America West since its inaugural flight in 1983.
* A successful installation and five-year maintenance contract with SITA`s Common Use Terminal Equipment, which provides the airline and ground handlers with standardised workstations, at the Geneva Airport in Switzerland. SITA is an information and telecommunication solution provider to the air transport industry. During June through August, EDS successfully installed 355 intelligent workstations, 177 boarding pass printers, 150 baggage tag printers, plus boarding gate readers and printers and networking for some of the Geneva Airport`s core operations.
* Separate three-year agreements with GlobeGround Romania, part of the international aviation services provider SERVISAIR/GLOBE GROUND, and Ukraine International Airlines for EDS`s departure control system, which EDS will also host. EDS systems will handle baggage and baggage reconciliation, load planning and control, aircraft services, and more than 700 000 passengers per year.
* A five-year agreement with Johannesburg, SA-based Nationwide Airlines for EDS`s Passenger Service Systems, inventory control systems and network services. The Passenger Service Systems, which will be hosted in EDS`s EMEA Air Transportation Data Centre in Zurich, include reservation and departure control.
* An agreement with Virgin Atlantic Airways, which renews the 19-year relationship by another six years. EDS will continue to provide passenger-processing services including applications development and hosting for the SHARES reservations system. EDS also will continue to provide application development support for the Distributed Load Planning System (DPlan). EDS has provided IT services for Virgin Atlantic since its inaugural flight in 1984.
EDS also completed a successful and on time implementation of its axsFlightplanning software with Corsair, a France-based subsidiary of TUI AG, the world`s largest tourism corporation. Another TUI subsidiary, TUI Airline Management, has reduced its fleet`s fuel consumption by 2% following the implementation of axsFlightplanning just over one year ago. TUI Airline Management manages Corsair and five other airlines in Europe including Britannia Airways (UK), Britannia Nordic (Scandinavia), White Eagle (Poland), Neos (Italy) and Hapag-Lloyd Flug (Germany).
EDS helps transportation industry save with economies of scale
According to AT Kearney`s analysis of Air Transportation Association of America data, IT and distribution costs are the third highest expense for an airline. Mike Hulley, global leader, EDS Transportation Industry, believes that as the airlines continue to cut costs elsewhere, their technology spending will continue to go up, causing the need for IT services companies like EDS that offer the ability to scale up and down as demand changes.
"The industry expertise and almost unlimited scalability that EDS offers will help these carriers streamline and maintain lower costs in spite of changes in demand," said Hulley. "People will always need to fly and the airlines will always need technology to support their operations."
EDS in the transportation industry
EDS has more than 9 000 people serving more than 300 transportation clients - including 109 domestic and international air carriers as well as governmental agencies, freight and distribution businesses, and hospitality and travel firms. EDS is well positioned to support clients in the airline industry, with a network of solution centres in Zurich, Johannesburg, Houston, Miami, California, Dallas, Mexico and India.
EDS, the premier global outsourcing services company, delivers superior returns to clients through its cost-effective, high-value services model. EDS`s core portfolio comprises information-technology and business process outsourcing services, as well as IT transformation services. EDS`s two complementary, subsidiary businesses are AT Kearney, one of the world`s leading high-value management consultancies, and PLM Solutions, a leader in product data management, collaboration and product design software. With 2002 revenue of $21.5 billion, EDS is ranked 80th on the Fortune 500. The company`s stock is traded on the New York (NYSE: EDS) and London stock exchanges. Learn more at eds.com.
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