Continental Airlines has announced that it has reached new agreements with two of its major suppliers, EDS and GE Aviation, which will deliver significant cost savings and efficiencies to the airline.The new contracts, together with several other smaller initiatives currently being worked on by the company, are expected to reduce costs by approximately $100 million annually when fully implemented.
In separate news releases being issued today, EDS and Continental are announcing the signing of a multi-year information technology (IT) services contract. Under this agreement, EDS will manage Continental’s compute environments, reservation systems, legacy application development and maintenance, field services, network and voice systems, help desk and complete desktop support. The agreement also calls for Continental and EDS to work together closely on a joint application modernization strategy, updating legacy systems to better suit the needs of Continental and its customers. EDS is the leading global airline IT services provider.
Separately, Continental has signed an agreement with GE Aviation covering maintenance and technical services for its existing 328 CFM56-7 engines, as well as 128 new CFM56-7 engines (including spares) to be delivered with 64 new Boeing 737 Next Generation aircraft. This contract runs through 2020. Under the agreement, Continental will pay GE Aviation fixed rates per hour of engine operation, and GE Aviation will handle overhaul and repair of the engines.
“We continue to seek efficiency and cost savings throughout our business, and working with long-time business partners like EDS and GE Aviation helps us achieve our goals,” said Jeff Misner, chief financial officer.