Lufthansa Systems

Lufthansa Systems AG - Lufthansa AG subsidiary company.

The company works in the field of IT services for airline companies and participants of other spheres of the market.

2014

Crushing of an asset on three companies

On October 24, 2014 Deutsche Lufthansa AG announced the beginning of long-term cooperation with IBM during upgrade of activity of concern in the field of IT. And according to arrangements which for October 24, 2014 are not approved finally Lufthansa transfers all the IT infrastructure to outsourcing of IBM.

Being going to implement the project with IBM, in plans at the management of Deutsche Lufthansa AG - to separate Lufthansa Systems into three companies, and, within process of outsourcing to sell infrastructure division of Lufthansa Systems AG company. Divisions of Airline Solutions and Industry Solutions of IT Lufthansa subsidiary company will work in the future at the corresponding markets as the independent companies.

These agreements should be approved the supervisory board of Deutsche Lufthansa AG and antimonopoly authorities. Their execution will demand a timely and successful completion of the plan of social compensation and dispute settlement.

According to some board members of Lufthansa Systems AG, cooperation with IBM will enhance competitiveness of the companies of Group and Lufthansa concern in general, improving the basic cost of assets and will help to get access to the latest information technologies which will be used for further innovations in business processes of Lufthansa. It will improve business performance, will increase customer focus, will designate accurate perspectives for the staff of infrastructure division and will allow them to take part in future technology developments.

Crushing of Lufthansa Systems and official start of work of the new companies are planned for the first quarter 2015. Completion of sales process of infrastructure division is appointed to March 31, 2015.

Transaction with IBM worth 1 billion euros

On November 18, 2014 it was officially announced the conclusion of the long-term IT transaction between IBM and Lufthansa. The agreement is expected seven years of cooperation of the companies.^[1]

According to terms of the contract, IBM receives from Lufthansa infrastructure division (IT Infrastructure) together with 1400 employees working in this group which as a part of airline was engaged in service of DPC, corporate networks and telephony of the German company.

The cost of the transaction was 1 billion euros. Thanks to it Lufthansa hopes to cut down annual expenses on IT infrastructure on 70 million euros.

As the IT outsourcer IBM will render to Lufthansa different services in information technology field. The aviaconcern hopes to increase by means of the partner efficiency of use of cloud, mobile and analytical tools at all levels of business. In particular, deployment of a private cloud for joint work of employees and also expansion of mobile functionality of the Lufthansa website and client applications is planned.

The Lufthansa airline transferred to IBM all the IT infrastructure to outsourcing

According to Martina Kederits (Martina Koederitz), the general manager in the German representative office of IBM, the agreement provides continuous access of Lufthansa to research and development of the partner.

"As a result the division of IT Infrastructure will be able to use the latest technologies and innovations including connected with cloud computing, tools of the analysis of Big Data and cognitive computing systems, such as IBM Watson" — noted Kederits.

The bargain concluded with IBM Simone Menne, the board member, the chief financial officer of Deutsche Lufthansa AG and the chairman of the supervisory board of Lufthansa Systems AG, commented as follows:

"Having transferred all the IT infrastructure to outsourcing of IBM, the Lufthansa Group company will be able to strengthen in general the competitive level and to improve the basic cost of assets within the plan of structural conversions. Together with IBM we will get access to the last information technologies that will allow not only to reduce our costs, but also to provide further transition to business processes in a digital format for increase in efficiency and customer focus".

Notes