American and HP seek to end IT partnership

Washington DC
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American Airlines and HP Enterprise Services have agreed to end their partnership to develop a new passenger service system (PSS) that could have competed with the likes of global distribution system giants Amadeus and Sabre.

Both parties will be able to walk away from the deal without penalty, however, HP will submit an unsecured claim for $7.7 million in goods and services to the US Bankruptcy Court of the Southern District of New York if the termination is approved by the court during a hearing on 28 June.

"The parties [American and HP] have been unable to reach agreement on a number of key issues affecting the project's direction and it became clear that an orderly termination of the PSS agreement was in the best interests of both parties," says American parent AMR in a motion to the court on 7 June.

American and HP formally agreed to develop Jetstream, as the planned PSS was known, in February 2010. The clean-sheet platform was to handle all of the airline's operations, inventory, customer information and other data.

The Fort Worth-based carrier will look at available off-the-shelf technology platforms for its new PSS, according to local reports.

American did not respond to questions by press time.

HP declines to comment on the agreement but says that it is still committed to developing scalable technology solutions for airlines.

The technology company announced an airline industry-specific architecture and platform of its Converged Cloud Services that includes the existing HP PSS on 5 June.