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IBM Lands $664M Deal With Japan Airlines

Mon Jun 25, 2001 2:35 pm

IBM lands $664M deal with Japan Airlines

By Chris Gonsalves, eWEEK
June 21, 2001 1:17 PM ET
Source: ZDNet

IBM Japan said today it had inked a 10-year, $664 million outsourcing deal with Japan Airlines to provide IT systems development and operations for the air carrier.

The work, to be carried out by IBM's Global Services division, is set to begin July 1. IBM Japan said it will transfer a number of its managers and engineers to JAL Information Technology Co. Ltd., the IT subsidiary of JAL.

IBM Japan will ultimately hold a majority stake in the IT subsidiary.

In addition to technology and support, IBM Japan will provide marketing services for JIT, which is looking to both improve internal IT services and cultivate external sales, according to Katsuo Haneda, senior managing director of JAL.

Teruo Shimizu, general manager for IBM Global Services in Japan, called the deal the largest of its kind for the Japanese airline industry and said it mirrored other IBM engagements in the region, including pacts with Ansett Australia and Air New Zealand, Singapore Airlines, Cathay Pacific and Korean Airlines.