Gen-i has lost its long-standing desktop and server support contract at Air New Zealand despite putting in the lowest bid and halving the price it was paid for the previous contract, sources close to the deal say.
The loss suggests there may be broader issues between the airline and Gen-i’s parent, Telecom, which earns around $30 million a year from Air New Zealand.
Axon has been awarded the desktop business.
It’s a reversal of what happened late last year when Gen-i won the outsourcing business of Axon’s largest client, Genesis Energy, with a bid around 40% lower than the next lowest bidder. Now Axon has returned the compliment by taking away one of Gen-i’s biggest contracts.
The Genesis business was worth around $3 million; the Air New Zealand contract is worth an estimated $5 million annually.
Gen-i had held the Air New Zealand business for the past seven years, initially through its forerunner, Wang.
Axon and Air New Zealand were in contract negotiations last week, and neither party was commenting. Gen-i boss Chris Quin didn’t return telephone calls.