Etihad Airways has signed a ten-year technology service agreement with IBM worth approximately $700 million, according to a press release issued by Etihad.
The agreement will allow the airline to enhance its guest experience, develop infrastructure and security, and improve efficiency.
The agreement allows Etihad access to IBM's range of secure and efficient technology service, according to the press release.
This would provide the airline and its partners a way to enhance their IT infrastructure into global, flexible and agile cloud-based platforms.
James Hogan, the president and CEO of Etihad, said in the press release that the agreement with IBM benefits their guests, employees and partners.
"This is a long-term, strategic partnership which will allow Etihad Airways and its partners to harness the latest technologies as we deliver our award-winning services," he said. "This is a game-changing agreement for Etihad Airways, for our partners and employees, and for Abu Dhabi."
Robert Webb, the chief information and technology officer of Etihad, told Nasdaq that the deal with IBM follows several similar agreements that Etihad has with suppliers.
The airline has similar agreements with Sabre Holdings Corp., SAP SE and Panasonic Avionics Corp.
Nasdaq also reported that Webb said that the airline has negotiated products and services for all carriers it holds a minority stake in to cut costs.
As of today, the company has made non-controlling investments in eight airlines, which includes Italy's Alitalia, Germany's Air Berlin PLC and India's Jet Airways Ltd.
As part of the agreement, Etihad and IBM will create a joint technology and innovation council in Abu Dhabi, according to the press release.
The technology and innovation council will be developing more personalized travel solutions using Etihad's industry expertise and IBM's global research capabilities.
Etihad said in the press release that the new council will focus on creating value for the airline's guests and bring technological innovation to Abu Dhabi and its people.
The airline will also be transitioning around 100 IT employees to IBM as part of the agreement to further develop their IT skills.
Etihad also stated in the press release that IBM will also be managing the entire data center operation for the airline.
This includes individual infrastructure service and IT helpdesk.
