25 February 2005 Airline giant British Airways (BA) has signed a multi-year, multi-million pound agreement with virtual private network (VPN) operator Vanco to outsource part of its telecoms infrastructure to cut costs.

Vanco will provide, design, implement and manage a Web-based Internet protocol (IP) security VPN across 155 BA sites in 64 countries.

The partnership forms part of BA’s strategic plan to implement an broadband network across Europe, the Middle Ease, Africa and the Asia-Pacific region.

“The virtual-network operator approach will deliver the high service levels, flexibility and lifetime cost benefits that our business requires to maximise its ability to remain successful in the 21st century airline environment,” said Gordon Penfold, head of IT business development and information security at British Airways.

“Under this deal, we will manage 20% of BA’s estate. Traditionally, there have only been one or two suppliers in this market which have had a stranglehold for 30 or 40 years. The airline industry will see BA’s action and take initiative from that,” said Allen Timpany, founder and CEO of Vanco.

Vanco has previously signed VPN outsourcing contracts with Ford, Avis Europe and Virgin Retail, but until now, the airline industry has been slow to take the bait.