In an effort to improve its customers’ booking, check-in and in-flight experiences, Delta Air Lines is acquiring data and intellectual property rights for key computer systems from Atlanta-based Travelport.
Delta’s unusual move comes as airlines increasingly compete to offer a better experience for customers online and during travel.
As part of the move, about 175 Travelport employees based in the Cumberland/Galleria area will work for Delta starting July 1. They will remain in the Travelport headquarters building. Travelport, a travel technology firm with about 3,600 employees worldwide, will still run the system infrastructure and Delta and Travelport will continue their partnership.
Delta said the deal with Travelport requires “minimal cash outlay” and will make Delta the only U.S. airline with direct control over those technology systems.
The Atlanta-based carrier will have control over investments for its website, reservations systems, airport kiosks and other systems. The Travelport systems are the “data and operational backbone” for more than 180 technological applications used to run the airline, according to Delta.
“Big data and seamless interaction with customers has never been more important to Delta and the airline industry,” said Delta CEO Richard Anderson in a memo to employees.
It’s also 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.
The deal with Travelport is one of a string of moves Delta has taken in recent years to wield more control over the commodities and services it depends on for its business. Those moves include the purchase of an oil refinery, joint ventures with foreign carriers and the acquisition of stakes in Virgin Atlantic, Aeromexico and Brazilian carrier Gol.
Terms were not disclosed, and the deal does not affect Travelport’s global distribution systems agreement with Delta.
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