SAP Helps Bankrupt Delta Air Lines

by Andrew James

SAP AG has agreed to reduce their fees charged to bankrupt air carrier Delta Air Lines by $1 million per year.

Documents filed on Tuesday 12th December in the United States Bankruptcy Court reveal that SAP has agreed to lower annual maintenance fees charged to Delta from $3,740,000 to $2,732,000 until 2009. The fees, however, still remain subject to annual increases of 2% in 2007 and 4% in 2008. After 2009, Delta will be required to resume paying fees “that conform to market rates” to SAP for maintenance of the software.

The company has also agreed to drop all existing financial claims against the Delta Air Lines, "excluding claims for unauthorized use or disclosure of SAP proprietary information."

The airline currently uses SAP's ERP software in order to manage its "supply network, for business to business supply procurement and for spare parts management," and they originally signed the licensing deal with SAP in 1999.