IBM, Air Canada Enter $908 Million E-Customer Services Pact

By BridgeNews IBM Corp. and Air Canada reached a seven-year, $908 million agreement, under which IBM will develop IT solutions to improve the airline's customer service. Air Canada expects to save about $130 million in IT costs over the term of the contract. The two companies also will open a project management office at Toronto's Pearson International Airport and will sell their products to other companies. This agreement expands on an IT services relationship forged between the two companies in August 1994. Under Air Canada's direction, IBM will manage all of Air Canada's computer and IT operations. IBM also will manage Air Canada's global IT infrastructure, including application development and maintenance, 20,000 workstations, employee help-desk services, and network and computer server operations.

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