EDS buys world's biggest airline network

As part of a multi-billion dollar deal, Sabre, the provider of the travel industry's global online hub, will sell off its infrastructure assets to services giant EDS.

In what Sabre describes as an "excellent match", EDS will pay $670m for what amounts to 25 per cent of the Sabre business. This will leave Sabre with its travel distribution and marketing services as well as its software products. And it is this element - the airline software applications - that is the company's bread and butter and represents a 13 per cent market share. Last year, these software applications brought in about $2bn in revenue making it by far the most profitable element of the company. A spokeswoman for Sabre explained that the move to sell the IT solutions side to EDS, along with 4,200 employees, was in line with the company's long term plans. She said: "It reinforces our strategy to concentrate on our higher growth business." EDS said in a statement that by strengthening its position in the airline industry it would gain "significant additional revenue potential". The deal is expected to close by mid-year.