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Germany: Lufthansa inks IT unit sale with IBM

By  |  October 22, 2014

German airline Lufthansa announced Wednesday that it has reached a deal with US technology firm IBM to sell information technology infrastructure assets.

Reports say Lufthansa is looking to cut costs and will split its IT unit Lufthansa Systems into three independent companies, selling the IT branch to IBM. The airline also announced plans to outsource all IT operations to IBM within the next seven years.

The plan “will directly improve our cost base and allows access to the latest IT technologies which we will use to continue digitizing our business process in order to increase efficiency and customer focus,” Lufthansa said in a statement.

While financial details of the deal were not disclosed, reports say the deal is likely to cut costs for the German airline by more than $88.5 million a year.

Full content: Xinhua Net

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