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Amadeus and British Airways Sign Major IT Services Agreement 
British Airways confirms Amadeus as its IT partner for inventory, reservations and departure control systems, in a deal worth up to EUR 600m over ten years. 
Amadeus to provide passenger management systems to over 80 aviation customers currently supported by Speedwing's Hosted and TPF Applications.
 
Madrid, Spain, 11 August 2000: further to the announcement of 19 April 2000, British Airways PLC [BAY.LSE] and Amadeus Global Travel Distribution SA [AMS Madrid] have today signed a ten year contract, whereby Amadeus becomes British Airways' global information technology ("IT") partner for their passenger management and other transaction processing facility (TPF) based systems.
 
This agreement provides Amadeus with the potential for up to EUR 600m in revenues over ten years. Significantly, it marks the start of a new business stream for Amadeus, as the company begins providing integrated IT services to the airline industry.
 
In selecting a partner, British Airways was influenced by Amadeus' strength in travel distribution technology and systems, as well as the potential for British Airways to reduce significantly its operating and development costs, while providing enhanced passenger management systems in the future. British Airways also stands to benefit from the extensive e-commerce expertise of Amadeus.
 
 In addition to British Airways, Amadeus will provide aviation IT systems to over 80 customers currently supported by Speedwing's Hosted and TPF Applications department.
 
 Under the terms of the contract, Amadeus will operate British Airways' reservations, inventory and departure control systems, and it will also create the next generation of passenger management systems for the airline industry.
 
Amadeus will establish a third systems support and development centre, near Heathrow airport in London, in addition to its existing facilities at Sophia Antipolis (France) and Miami (USA). The search for a suitable site has begun and further details are expected to be announced shortly. The new centre will be headed by Jean-Philippe Mesure, currently Director of Systems Planning at Amadeus. He will be supported by some 300 British Airways personnel, in addition to other Amadeus staff and external new recruits.
 
Next year British Airways will become an Amadeus System User, joining 120 other airlines that have already chosen to out-source their airport and city ticket office sales and reservations services to Amadeus, under the unique System User concept. The opportunity to become an Amadeus System User is also available to current Speedwing customers.
 
Responsibility for British Airways' passenger management systems will be assumed by Amadeus immediately. The provisional timetable for key activities is:
 
April 2001: British Airways' BABS reservations system transfers to the Amadeus data centre in Erding, Germany 
October 2001: implementation of British Airways as an Amadeus System User will begin, with completion expected by January 2002. 
The new generation of inventory and departure control systems will be delivered after the System User implementation.
 
The contract includes the issue of warrants to British Airways, to subscribe for up to 1.0 per cent of the current issued Class A share capital of Amadeus.
 
Commenting on this news Bryan Wilson, Director of Information Management for British Airways said:
 
"Today's contract signing reflects British Airways commitment to achieve the finest technology solution for our passenger service processes and other TPF systems.
 
"The advanced technology and travel distribution expertise of Amadeus were key factors for us in selecting them as our partner, for this vital area of our business. We look forward to a long and rewarding partnership with Amadeus, as we begin working on the extensive IT systems migration and development work that lies ahead."
 
Hans Jorgensen, Vice President of Partners and Providers Strategy for Amadeus, said:
 
"This agreement with British Airways marks the beginning of a significant new business stream for Amadeus. By providing airlines with passenger management systems, including inventory and airport services, we are strengthening our portfolio of inter-related businesses.
 
"In British Airways we have an outstanding partner, supported by experienced Speedwing and Information Management professionals. We will introduce the next generation of systems for airline critical core IT applications, with British Airways as the launch customer.
 
"Together we look forward to setting a new standard for passenger management systems, and to extending this new Amadeus integrated IT services concept to other airlines around the world."
 

-END-

 
Notes to Editors
 
Amadeus Global Travel Distribution
In addition to British Airways, as announced on 3 May 2000, Amadeus is currently in negotiations with Australian airline Qantas to provide them with similar passenger management systems.
 
Amadeus is a leading global distribution system (GDS) and technology provider serving the marketing, sales and distribution needs of the world's travel and tourism industries. Worldwide, Amadeus is chosen by more travel agency locations, receives more billable bookings and processes more international travel reservations than any other GDS. Its comprehensive data network and database, amongst the largest of their kind in Europe, serve over 50,000 travel agency locations and more than 8,200 airline sales offices worldwide.
 
Through the Amadeus system, travel agencies and airline offices are able to make bookings with some 500 airlines, representing more than 95 per cent of the world's scheduled airline seats. The system also provides access to over 51,000 hotels, 49 car rental companies serving some 24,000 locations, as well as serving newer provider groups, including ferry, rail, cruise, insurance and tour operators.
 
Amadeus is a significant provider of information technology and an enabler of e-commerce for the travel industry. Amadeus also delivers the powerful booking engine behind the web pages of more than 3,800 travel agencies, and over 60 Web sites serving 28 airlines. Additionally, it provides similar e-commerce solutions for partners including BTopenworld (UK and Ireland), Gruppo L'Espresso (Italy) and Terra Networks (Spain, Portugal and Latin America).
 
Founded in 1987, and fully operational from 1992, Amadeus is headquartered in Madrid, Spain. Its data centre is in Erding (near Munich), Germany and its development offices are located in Sophia Antipolis (near Nice), France. The company has approximately 3,000 employees worldwide.
 
More information about Amadeus is available at www.global.amadeus.net
 
British Airways PLC
British Airways is the world's largest international passenger airline. Its mainline scheduled route network is one of the world's most extensive. In 1998-1999 the airline operated an average of over one thousand flights a day on an unduplicated route network of about 686,000 kilometres. The British Airways Group fleet as at 31st December 1999 comprised 356 aircraft.
 
The airline's main bases are London Heathrow Airport, the largest international airport in the world and London Gatwick Airport which is now the 6th largest. An average of 63,779 staff were employed by the Group worldwide in 1998-99, 80 per cent of them based in the UK.
 
The British Airways Group carried a record 45 million passengers during 1998-99.
 
More information about British Airways is available at www.british-airways.com
 
Speedwing
Speedwing Hosted and TPF Applications is a department within Speedwing, which is a division of British Airways. Speedwing's Hosted and TPF Applications has been a major player in the passenger services reservations and departure control systems market.
 
The passenger and cargo management systems provided by Speedwing include: reservations, fares, ticketing and inventory control, departure control, flight operations and for cargo - operations and freight forwarding systems. The department also provided resources to undertake complete TPF projects and technical training.
 
Speedwing is now concentrating on its existing consulting and mobile communications businesses and is growing its increasingly successful Indian based outsourcing operation, WorldWide Working.
 
For further information please contact:
 
Corporate and Marketing Communication
Amadeus Global Travel Distribution
Tel :+34 91 582 0160
Fax :+34 91 582 0188
E-mail : info@amadeus.net
Mike Thorne
British Airways PLC
Tel:+44 208 738 6639
Fax: +44 208 738 9611 
 

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