Amadeus wins IT contract from Lufthansa, United Air

FRANKFURT (Reuters) - Spain's Amadeus has won a deal to provide Star Alliance airlines Deutsche Lufthansa and UAL Corp's United Airlines with a new IT platform for handling passengers, Star said on Thursday.

The alliance plans to expand use of the platform, which will be used for services such as check-in, reservations and ticketing, to other Star Alliance members, it said.

Sources familiar with the matter told Reuters Lufthansa's part of the contract was worth 300 million euros (US$373 million).

The new common platform will enable Star airlines to lower IT costs and increase the speed of delivering new products to customers, the alliance said.

"The...platform is a good example of how we envisage future co-operation within the alliance," Star chief executive Jaan Albrecht said.

"With common IT we have looked at implementing an alliance product for our member carriers straight from the outset."

Star Alliance member BMI has already chosen a different IT system, provided by Lufthansa's own Lufthansa Systems division.

The UK airline, in which Lufthansa holds 30 percent, said in July it had picked Lufthansa Systems' FACE system.

But a Lufthansa spokeswoman said Lufthansa Systems was not considered as sole IT partner for the alliance because of its lack of independence from the leading Star member.

The division still competed indirectly for the contract as a partner with US bidder Unisys.

Lufthansa Systems will, however, help its parent with the integration of the new platform and its subsequent operation.

Lufthansa will begin the switch to the Amadeus system in the second half of 2006 and expects to complete the transfer by the end of 2007. United is currently finalising its timetable, the alliance said.

Star was formed in 1997 and currently has 16 members, offering more than 15,000 flights daily.