Finland`s national airline, Finnair, has signed a USD$400 million deal which will see computer giant IBM take over the running of its information technology systems and develop its e-business.

IBM will focus on areas like wireless check-in, e-ticketing and Internet and wireless ticket sales and develop new e-business ideas for Finnair over the next ten years.

“This relationship represents a significant departure from traditional IT outsourcing,” said Joseph Benaroya, general manager, travel and transportation sector, IBM in Europe.

“It builds on Finnair`s in-house capabilities, provides leading edge industry solutions and strengthens Finnair`s competitive advantage in the global marketplace as well as IBM`s airline industry expertise.”

The Finnish airline is leading the development of wireless Web commerce technology for the oneworld alliance, which includes eight airlines. The new partners will create an innovation center to serve as an incubator for new e-business solutions.

“The resources IBM is bringing through the new innovation center will be invaluable to us as we work toward our goal of generating more than half our ticket sales via the Internet by 2006,” said Eero Ahola, Finnair`s senior vice president, corporate business development and strategy.

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