Air Canada and IBM have announced a seven-year, $908 million technology partnership. The agreement is IBM’s largest airline services agreement, and Air Canada expects to save about $130 million in IT costs.
Air Canada will work with IBM employees in Canada, at the T. J. Watson Research Laboratory in Yorktown Heights, N.Y., and at IBM’s travel and transportation solutions development center in Boca Raton, Fl., to create new solutions. The first example will be establishment of an IBM/Air Canada project management office at Toronto’s Pearson International Airport.
The solutions will be offered to other companies through a marketing alliance created between Air Canada and IBM. In addition, IBM will invest in various venture capital and technology projects at Air Canada.
The agreement also expands on an IT services relationship between the two companies. IBM will manage all of Air Canada’s IT operations and infrastructure – including application development and maintenance, 20,000 workstations, employee help desk services, networks and servers.