US Airways to dump Sabre tomorrow?

[us10]

Reuters
US Airways agrees to retain key EDS services deal
Friday February 28, 10:49 am ET


NEW YORK, Feb 28 (Reuters) - Electronic Data Systems Corp. (NYSE:EDS - News) on Friday said bankrupt US Airways (OTC BB:UAWGQ.OB - News) had elected to retain a key contract with the world's No. 2 computer services provider.

EDS said US Airways had decided to accept an amended contract. It said details of the new deal were confidential.

EDS said the new terms would have no effect on its financial outlook.

EDS investors had been eyeing the pact after US Airways said EDS was charging it too much compared with other carriers. Analysts this week said EDS was poised to lose the contract in favor of its biggest rival, International Business Machines Corp. (NYSE:IBM - News).

When EDS signed the deal with US Airways in 2001, it was worth about $200 million in revenue a year, or $5 billion over 25 years.

 

[ITRADE]

http://biz.yahoo.com/djus/030228/1250000516_1.html

 

[Hope777]

Chip, when you are right you're right.....NOT! You must have some great in-house sources.

 

[chipmunn]

Money talks, B.S. walks, which is clearly what happened here. Regardless, the issue with EDS was first discussed on this board before it became public knowledge.

The good news is that the new agreement will likely lower US' costs. In addition, the company may have elected to keep Sabre over a possible transition to Apollo to protect itself against a possible UA failure, although IBM was in the running to provide IT services.

Bloomberg News reported "Any time you get resolution, it's a positive, even if the contract is at a lower rate (for EDS)," said Ryan Davies, an analyst for US Bancorp Asset Management, which owned 1.34 million Electronic Data shares as of December.

Cosmo, I believe Argento may be right in that you appear to like to "shoot the messenger" when you do not like the message.

Chip

 

[Finish or Ignore]

Sabre could give it to us for free and it would still be c-r-a-p

 

[TomBascom]

[blockquote]
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On 2/27/2003 10:55:26 AM enilria wrote:

EDS doesn't own Sabre, but more importantly Sabre sub contracted its support to EDS at US Airways.

Will they be willing to deal with IBM?

Maybe, maybe not.
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[/blockquote]

http://www.eds.com/news/news_release_templ...html?rowid=1883

 

[Stick-n-Rudder]

"Sabre becomes a separate legal entity of AMR in July of 1996 followed by a successful initial public offering in October in which AMR releases approximately 18 percent of its shares to be publicly traded."

Thank you. I thought I was loosing it!

 

[Cosmo]

[blockquote]
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On 2/28/2003 1138 PM chipmunn wrote:

Cosmo, I believe Argento may be right in that you appear to like to "shoot the messenger" when you do not like the message.
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[/blockquote]
Don't give me any of your "shoot the messenger" crapola! YOU started this thread by bragging about how your secret sources enabled you to predict several months ago that EDS would lose its contract with US. And then you dragged me into the discussion by essentially daring me to say "Chip, you were right." Well, in what I imagine was a big surprise to you, that's precisely what I did, in what I thought was a light-hearted way. Frankly, I thought that PineyBob and Hope777 treated you much more harshly in this thread than I did (at least until this post).

But you failed to realize that you were tempting the "fickle finger of fate" (for those of you that remember a certain comedy show from the late 1960s) in a big way. And, as often happens, fate came back and figuratively slapped you across the face.

YOU started this, and you have nobody to blame but YOURSELF for the fact that your credibility took a bigger hit than necessary!