<B>Air Canada Alters Plans</B>
Air Canada last week shelved a partnership with Skyservice that was to include a low-fare subsidiary and a new corporate jet division (BTN, May 7). Air Canada instead will focus on creating its own internal low-fare operation. The carrier, stating that it is now "more important than ever to participate in the one growing and vibrant airline segment in North America," later this year will announce details of a 20-plane low-fare carrier. Air Canada also signed a seven-year, $908 million strategic partnership with IBM. IBM will supply the carrier with enhanced customer service technologies, including new Web, wireless and self-service products, while continuing to handle all aspects of Air Canada's IT operations. The carrier said the contract will save $130 million.