Delta makes deal to bring software platform in house

Delta Air Lines has inked a deal to acquire data and intellectual property rights from key computer systems Travelport

In an effort to serves its customers better and to operate more efficiently, Atlanta-based Delta Air Lines has inked a deal to acquire data and intellectual property rights from key computer systems Travelport.  Under the agreement, the carrier said that as of July 1st, it will hire 150 Travelport employees.  

According to Delta, the airline will be the only U.S. airline to directly control the critical technology systems, making it “better able to build the next generation of technology” that will improve the travel experiences of its customers. Delta has more than 180 technology applications used to run the airline.

The Wall Street Journal says Delta is just the latest company to put more emphasis on developing its own software. Citing CIO Journal, the Wall Journal reports major companies like Facebook are moving in a similar direction too and the social media giant is developing its own sales tools. GM is taking all of its IT in-house too. 

According to the Atlanta Journal Constitution, the move is part of a broader effort by Delta to rebuild its computer systems with the ultimate goal of allowing Delta employees to handle their work on mobile devices like tablets and smartphones. 

There was no immediate word on the terms of the deal. 

"We need to own, control and operate the data around our operations system," Delta CEO Richard Anderson said in an interview. "We'll be able to make investments more quickly. We won't be on a shared software model." By having a proprietary system, Delta also will be able to help its smaller airline partners profit from its technology advancements, he said. 

By having control of the system, Delta will also be able to help its smaller airline partners profit from the technological advancement. 

Under the previous agreement between the two companies, personnel from Travelport, also Atlanta-based, worked exclusively on the Delta passenger service and flight operations software dates back to when Delta was an owner of the Worldspan system which Travelport acquired in 2007. Travelport will continue to run the system infrastructure for the Delta platform in its Atlanta data center.


Further reading:

 

Gibson Dunn’s Becker assists with Susser’s $1.8B acquisition by ETP

Bracewell’s McGinley advises on $1.4B Apache deal 

Ropes & Gray partners offer Biomet regulatory counsel on Zimmer deal 

Faegre’s Sharrow advises on $100M Gary/Chicago Airport partnership

 

Contributing Author

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Alexis Harrison

Alexis Harrison is a Connecticut-based writer and public relations professional whose career spans both print journalism and broadcast news. Alexis started her professional life as...

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