IBM Global Technology Services
Analyst Fact Sheet
September 21, 2010
Jet Airways signs US$62M outsourcing deal with IBM
Key Facts
•
IBM announced today that it has signed a ten-year business transformation and information
technology outsourcing agreement with Jet Airways, India’s premier International airline.
•
Valued at US$62 million, the deal represents a step in Jet Airways’ journey of technology-led
business transformation aimed at helping the airline achieve significant growth by aligning the
company’s IT and business strategy.
•
IBM will provide Jet Airways with solutions including IT outsourcing with employee transition, data
centre operations, end user services, central helpdesk, network management services, server
storage operation, security services, application management services including SAP, flight
operation, revenue management, roster and crew management, cargo management, customer
relationship information system, aircraft maintenance and operations system, baggage
reconciliation system and sales force automation.
•
First of its kind outsourcing contract signed by an Indian airline company, spawning a potentially
new business model and benchmark for other players in the Indian aviation industry to follow and
implement.
Deal Benefits
•
This agreement will enable Jet Airways to focus on its core business and enable both efficient cost
management and a high standard of customer service and satisfaction.
•
The agreement will help Jet Airways take the company’s IT systems to the next level of innovation
and improve its operational efficiency.
•
Jet Airways will accrue a lower cost of IT ownership with Service Level Agreement based
operations including Application Management Services, a flexible and scalable IT architecture that
aligns with business growth, a self-sustaining investment model to support the transformation
project, and access to industry expertise and knowledge pools.
Why IBM?
•
IBM partners with many of the world'
s leading airlines to deliver IT and business transformation
programs that leverage the Corporation’s deep industry knowledge, strategic consulting and largescale IT outsourcing capabilities.
•
IBM will bring this global experience and industry expertise to help Jet Airlines achieve its mission
to innovate and lead in the market as it continues to grow and expand internationally.
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About Jet Airways
Jet Airways currently operates a fleet of 90 aircraft, which includes 10 Boeing 777-300 ER aircraft, 12
Airbus A330-200 aircraft, 54 next generation Boeing 737-700/800/900 aircraft and 14 modern ATR 72-500
turboprop aircraft. With an average fleet age of 4.99 years, the airline has one of the youngest aircraft fleet
in the world. Flights to 65 destinations span the length and breadth of India and beyond, including New
York, Toronto, Brussels, London, Johannesburg, Hong Kong, Singapore, Kuala Lumpur, Colombo,
Bangkok, Kathmandu, Dhaka, Kuwait, Bahrain, Muscat, Doha, Abu Dhabi, Dubai, Jeddah, Sharjah, Riyadh
and Dammam.
About Jet Airways Konnect
Jet Airways Konnect is Jet Airways’ all-economy service on key domestic routes, designed to meet the
needs of the low-fare segment with value-for-money fares. Jet Airways Konnect links seven major metrosMumbai, Delhi, Chennai, Bengaluru, Hyderabad, Ahmedabad and Kolkata - with several destinations
across India, operating over 200 flights daily. Konnect Select’ is a premium economy product introduced on
certain Jet Airways Konnect flights. This new front cabin class features wider and more comfortable seats,
with a 40 inch seat pitch. The services include complementary in-flight reading material, a welcome drink,
and complimentary hot meals on-board.
About JetLite
JetLite is a wholly owned subsidiary of Jet Airways India Ltd. and was acquired by Jet Airways in April 2007.
Positioned as an all-economy, no-frills airline, JetLite operates a fleet of 22 aircraft, which includes 17
Boeing 737 series and 5 Canadian Regional Jets 200 Series, aircraft. The airline flies to 25 domestic
destinations and 2 international destinations (Kathmandu and Colombo), operating over 110 flights a day,
on average. Jet Airways, Jet Airways Konnect, its all-economy, no-frills service, and JetLite have a
combined fleet strength of 112 aircraft and operate over 500 flights daily.
Analyst Relations Contacts
India
Kiran Yellupula
Analyst Relations
IBM India
Phone: +(91) 9769541122
Email: kiran.kumar@in.ibm.com
IBM Copyright 2010
Growth Markets Unit
Pilar Martin
Analyst Relations
IBM Growth Markets
Phone: +(61) 401990229
Email: pilarm@au1.ibm.com
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