Amadeus is to work with IBM to help airlines move to standardised, web-enabled IT architectures to cut costs in the troubled sector.

The reservations service provider has agreed a deal with the IT supplier to sell their products and services in a more complementary manner.

Amadeus will provide its global distribution system, as well as the new inventory management and departure control systems it is developing, and IBM will contribute its strengths in outsourcing and IT services.

Amadeus hopes to strengthen its position as a major airline supplier by providing services that help companies take costs out of their IT infrastructure and improve customer service.

'The ongoing evolution in how travel is purchased, managed and delivered, as well as the airlines' current economic landscape calls for significant change and business transformation,' said Hans Jorgensen, vice president for Amadeus airline business group.

Jorgensen says Amadeus and IBM supply complementary products, with Amadeus developing and hosting core airline applications like reservations and check-in management, while IBM takes care of outsourcing and more traditional IT applications.

'Our ongoing investment in application development means that we can cost-effectively provide new functions that the airlines can't afford to do for themselves,' he said.

In the UK, British Airways and BMI use Amadeus hosted services, freeing them to focus on their businesses and removing fixed costs from their IT environment.

BA started using Amadeus' reservation system in 2000 and expects to migrate to its new passenger service system in 2004, which will provide inventory management and departure control systems that are fully integrated with ticket sales and reservations.

Qantas and Finnair are also expected to adopt the system.

Amadeus' global reservations system is used in over 65,000 travel agencies to sell 95 per cent of the world's scheduled airline seats, and 140 airlines use its sales system.