IBM lands $400 million contract with Finnair

Finnish airline Finnair Oyj has awarded IBM a 10 year, $400 million contract to run Finnair’s IT systems and develop new e-business applications.

As part of the contract, Finnair and IBM will create an innovation centre to serve as an incubator for new e-business solutions. The centre will draw on IBM’s research, technology, and industry expertise as well as Finnair’s airline industry know-how and experience.

According to a statement, the innovation centre will become an important vehicle for Finnair as the airline transforms its infrastructure and provides new e-business services to its customers.

‘This will further improve our competitiveness and speed up the development of new e-business solutions. The resources IBM is bringing to Finnair through the new innovation centre will be invaluable to us as we work toward our goal of generating more than half our ticket sales via the Internet by 2006,’ said Eero Ahola, senior vice president, corporate business development and strategy, Finnair.

‘As a result of this relationship, Finnair will also be able to reduce IT-related expenses and release capital for our core airline business,’ added Ahola.

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