TelstraClear wins Qantas cash

By RICHARD PAMATATAU

The deal struck by Qantas with IBM and Telstra for its future information technology infrastructure is worth "millions of dollars" a year to TelstraClear, says chief executive Rosemary Howard.

Qantas yesterday announced deals with IBM and Telstra worth A$650 million ($745 million) and A$750 million respectively for a range of services to allow both companies to manage all computing and communications for the airline.

Fiona Balfour, Qantas chief information officer, said existing infrastructure and facilities, including the data centre the company had maintained for more than 40 years, could no longer meet Qantas' IT needs.

"Everything we do depends on technology, from our online booking engine and ticketing to load and departure control, as well as the technological advances on board our aircraft and at airports," said Balfour.

Telstra will be responsible for domestic data, voice and desktop services over seven years in Australia and New Zealand.

Howard said TelstraClear had been an integral part of the negotiations with its parent and the win was a strong signal that her company had the ability to provide services in New Zealand, but also of the strength and importance of the growing transtasman market.

TelstraClear already had business with Qantas in New Zealand but it "is nothing like what this will represent", said Howard.

She would not reveal the size of the deal or what proportion of the project was TelstraClear's.

She said TelstraClear had enough staff for the New Zealand end of the deal.

Under the A$650 million agreement, IBM will acquire and manage the delivery of data centre operations, mainframe and mid-range computing and other managed services over 10 years for Qantas

IBM New Zealand said most of the IT work for the project would be handled out of Australia.

Balfour said the transition of the services would begin on May 31 and implementation would be completed within two years. The agreements follow a year-long review of the existing services.