Air Transport World

US Airways takes a Sabre to its IT infrastructure.

Under a huge 25-year agreement, the AMR Corp. subsidiary will be responsible for solving the airline's Y2K headaches

After finally digging itself out of deep financial and labor-relations pits last year, US Airways found itself short of both the time and the resources needed to modernize its information technology systems and prepare them for the striking of the Year 2000 (Y2K) doomsday clock.

As a consequence, in mid-December, it awarded to Sabre Group, a majority-owned subsidiary of AMR Corp., what is believed to be the largest IT outsourcing contract in airline history--a $4.3 billion pact under which Sabre will perform substantially all of US Airways' IT functions for the next 25 years. The deal dwarfs even the $3.6 billion, 10-year agreement signed with American Airlines when Sabre was spun off from the carrier as a separate company in 1996 (ATW, 11/96, p. 95).

Sabre has assumed responsibility for the entire US Airways IT infrastructure, "including data center operations, applications, communications, distributed systems, help desks, hardware and personnel," the two companies said. …

Log in to your account to read this article – and millions more.