IBM counters Gen-i insurgency at Air New Zealand

It may have lost a battle but it has won the war.

IBM has renewed its technology services contract with Air New Zealand for five years – a deal worth tens of millions.

Under the agreement, IBM will provide new mainframe and virtual hosting services for the airline.

A month ago, things were looking darker for Big Blue.

On August 20, Air New Zealand took its secondary data centre business away from IBM and handed it to Telecom’s IT and telco services division, Gen-i.

NBR understands that Gen-i (which already has a telecommunications network services contract with the airline) was angling to further increase its business with the airline (although the mainframe hosting was not put up for competitive tender).

Gen-i got a foot in the door following a day-long data centre outage and ensuing ticketing chaos in October 2009.

The incident prompted Air New Zealand chief executive Rob Fyfe to send a blistering email to staff describing his frustration with IBM (sample line: “In my 30-year working career, I am struggling to recall a time where I have seen a supplier so slow to react to a catastrophic system failure such as this and so unwilling to accept responsibility and apologise to its client and its client’s customers.”).

Now, fences have clearly been mended.

The new agreement reflects “a further strengthening of the relationship between the two companies” IBM New Zealand managing director Jennifer Moxon said.

IBM has partnered with Air New Zealand for 13 years.

The company’s existing deal has two years left to run; with the five-year extension, IBM is safely on board for another seven years.

Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot


Sym Price Change
USD 0.7053 0.0000 0.00%
AUD 0.9488 0.0000 0.00%
EUR 0.6318 0.0000 0.00%
GBP 0.5517 0.0000 0.00%
HKD 5.5057 0.0000 0.00%
JPY 78.5540 0.0000 0.00%


Commodity Price Change Time
Gold Index 1266.7 11.460 2017-05-26T00:
Oil Brent 52.5 0.720 2017-05-26T00:
Oil Nymex 49.8 0.910 2017-05-26T00:
Silver Index 17.3 0.130 2017-05-26T00:


Symbol Open High Last %
NZX 50 7434.5 7441.6 7434.5 0.10%
NASDAQ 6207.0 6211.5 6205.2 0.08%
DAX 12604.4 12611.5 12621.7 -0.15%
DJI 21070.2 21092.8 21083.0 -0.01%
FTSE 7517.7 7554.2 7517.7 0.40%
HKSE 25671.0 25724.4 25630.8 0.03%
NI225 19798.5 19801.6 19813.1 -0.64%
ASX 5789.6 5789.6 5789.6 -0.65%