The companies signed a letter of intent to develop the program, known as Jetstream, in the next four years. American and Hewlett-Packard declined to comment Wednesday on the cost of the system, which will process flight data, traveler check-in and airport operations data for employees.
Jetstream is intended to improve efficiency and consistency, reducing operating costs. It gives Hewlett-Packard a system to sell to other airlines, capitalizing on the $13.2 billion purchase a year ago of Electronic Data Systems to supplement its computer sales business with service contracts.
“We’re about to build the next generation of airline systems,” Monte Ford, American’s chief information officer, said on a conference call. “We will provide a platform for a future of customer service that doesn’t exist today.”
American, a unit of Fort Worth-based AMR, pioneered the first airline reservation system more than 45 years ago, and it’s still used by most carriers.
The program will be developed and implemented in stages, allowing American to spread the cost over time, Ford said. “Small pieces” will be implemented, though not visible to customers, within the first year, he said.
The companies declined to comment on potential revenue from the new passenger-service system.
“If we get to a place where we run a better airline and customers have a better experience, that’s good enough,” he said.
American remains a customer of Sabre Holdings and other global-distribution systems that provide its schedules and prices to travel agencies.
AMR rose 9 cents to $5.78 in New York Stock Exchange composite trading. Hewlett-Packard, based in Palo Alto lost 20 cents to $44.48 in Nasdaq trading.