HP & PwC in aviation alliance
Hewlett-Packard, the computer and printer maker, and professional services firm, PricewaterhouseCoopers announced an alliance to sell computers and services to the aviation industry.
The deal follows the failed acquisition talks last year between HP and PwC. Through the alliance, the two companies aim to knock International Business Machines off the top spot of what they see as a $15bn market.
HP scrapped an $18bn bid to buy PwC’s consulting arm in November after HP’s share price fell sharply. “When those talks broke down we said we had to find other ways of working together,” said Scott Hartz, global managing partner of PwC’s management consulting services practice.
If the aviation alliance works, the groups might try other joint projects, he added.
Carly Fiorina, HP’s chief executive, was in Madrid over the weekend, wooing airline and airport executives at the World Air Transport Summit.
HP and PwC plan to open an Aviation Solution Centre where their staff will work together on technologies aimed at improving everything from airport management and baggage handling to wireless communications between pilot and crew.
One project promises to create the “hurdle-free” airport, where passengers can skip delays by checking in via handheld computers.
HP and PwC did not reveal financial details of the deal beyond saying that they were each investing “tens of millions” of dollars.
The deal will build on PwC’s existing aviation services operations. HP already sells software and systems to, among others, American Airlines and Swissair.
The alliance also underlines HP’s more cautious approach to building up its services operations since the PwC acquisition collapsed.
Anne Livermore, president of HP Services, said she was not ruling out the possibility of further acquisitions.
But she added that the group was concentrating most of its efforts on expanding the unit through alliances and simply hiring.
Earlier this month, HP signed a broad-based technology services alliance with Accenture, formerly known as Andersen Consulting.
HP and competitors including Compaq and IBM have concentrated on building up their services businesses amid a sharp slowing in demand for their core hardware products.
HP’s consulting revenue grew 33 per cent in its second quarter, while overall sales slipped 4 per cent.
