HP downsized a contingent of contractors working on its Agilaire Passenger Service Solution and American Airlines' Jetstream projects, according to sources.
The reduction of the contractor workforce occurred May 17.
However, there are varying estimates of the size of the cuts, with one source estimating that 200 to 250 people were axed and another pegged the trims at 40-50 contractors.
HP didn’t respond to requests for comment.
Agilaire is HP’s name for the airline reservations system it is developing, with Jetstream for American Airlines slated to be its first reservation system implementation.
One source opined that the contractor cuts signify that the Agilaire project is in disarray. A first release of Agilaire, which would entail proof of concept, system testing and integration of several airlines, including American and two non-U.S. carriers, was slated for early 2012, this source said. Two sources confirmed that Air China and Swiss are among carriers which have expressed interest in Agilaire.
"But then everything went to hell in a handbasket," the source said of the project.
However, another person close to the project ascribed the downsizing to routine “growing pains” in a "massive IT project."
For its part, American Airlines believes that the Jetstream effort is proceeding according to plan.
“We’ve made good progress on the Jetstream project,” says Ryan Mikolasik, a spokesman for American Airlines. “HP has brought in new leadership and the project continues to move forward.”