- Oct 29, 2006
Lufthansa nears deal to sell IT infrastructure unit to IBM - Strategy - News - iTnews.com.au
German airline Lufthansa is close to a deal to sell its IT infrastructure unit to IBM, including an outsourcing agreement for the services, as part of a shake-up of its technology activities.Europe's largest airline by revenue is undergoing restructuring and cost-cutting efforts to better position itself to compete with low-cost carriers and Gulf rivals.
It earlier this year said it was seeking a buyer for the unit, which provides data centres, networks and telephony, because it requires a high level of investment and economies of scale, which the airline could not provide.
Under the planned deal, Lufthansa will outsource all of its IT infrastructure services to IBM under a seven-year deal and the US firm will take over the airline's IT infrastructure division, currently part of Lufthansa Systems.