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IT partnership with IBM to split Lufthansa Systems into three companies

  • Published by Ozgur Tore

Deutsche Lufthansa AG announced that they will soon sign IT partnership with IBM.

According to the terms to be agreed, Lufthansa will outsource all of the Group’s IT infrastructure services to IBM. The IT group is also expected to take over the Infrastructure division of the current Lufthansa Systems AG. The outsourcing agreement is to have a term of 7 years. It will enable Lufthansa to benefit from a permanent reduction of IT infrastructure costs by average approximately 70 million EUR annually. An offer to this effect has been submitted and is now subject to final negotiations.

lufthansa-systems

The plan is to split Lufthansa Systems into three companies and to sell the Infrastructure division as part of the outsourcing process. The Airline Solutions and Industry Solutions divisions of the Lufthansa IT subsidiary are to operate as independent companies in their respective markets in the future. The agreements will be subject to the approval of the Lufthansa Supervisory Board and the antitrust authorities. Execution will also require the timely and successful conclusion of the social compensation plan and the reconciliation of interests.

“The Cooperation with a global and successful IT group like IBM will strengthen the competitiveness of the Group companies and the Lufthansa Group as a whole. It will directly improve our cost base and allows access to the latest IT technologies which we will use to continue digitizing our business processes in order to increase efficiency and customer focus” said Simone Menne, Member of the Executive Board and CFO at Deutsche Lufthansa AG and Chairperson of the Supervisory Board of Lufthansa Systems AG. “This will also give the employees of the Infrastructure division clear job prospects and enable them to participate in future technological developments,” Menne continued.

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