IBM to Provide Human Resource Services to Air Canada

ARMONK, N.Y. - IBM (NYSE: IBM) today announced that it has signed an agreement to provide human resource (HR) business process services to Air Canada (TSE: AC.A, AC.B).

Under the terms of the nearly eight-year, $80 million (CAD) contract, IBM will provide HR services for Air Canada employees, managers and retirees, including HR contact center, employee data management, employee travel support, payroll, benefits administration, leave management, and certain recruiting services, in support of Air Canada’s North American Operations. IBM will also provide software application support for the HR systems used to provide the services. HR Services will be delivered from IBM facilities in Montreal, Quebec, Canada; Saint John, New Brunswick, Canada and Manila, Philippines.

The new agreement, with IBM Global Process Services (IBM GPS), is in addition to a separate information technology (IT) outsourcing contract between Air Canada and IBM signed in 2001.

“The search for a services provider for Air Canada’s HR operations centered on finding a vendor with a strong service offering, a commitment to drive transformation and a proven ability to ensure delivery and lower costs,” said Kevin Howlett, Air Canada’s senior vice president, Employee Relations. “IBM’s core strength as a market leader in innovation played an important role in our decision making process. We look forward to working with the IBM team to implement an increasingly integrated approach to self-service processes for our employees.”

“Air Canada is a leader in using technology to improve the customer experience – whether for their passengers or their employees,” said Mark Levy, general manager, Human Resources and Learning Solutions, IBM GPS. “Taking advantage of leading Internet technology, analytics and more efficient business processes can help them provide the best possible level of services and improve the overall employee experience.”

Air Canada is a worldwide leader in the customer travel experience. IBM and Air Canada also work together in a variety of airline industry-leading initiatives including self-service kiosk technology, customer loyalty sales and services and an award-winning mobile application that allows passengers to automatically rebook flights when there is an irregular event. Currently, Air Canada is exploring with IBM how to bring Watson-like computer analytics to its flight scheduling and fuel reduction programs.

About IBM

With more than 50 years experience in aviation, IBM uses its software, hardware and services expertise to help top airlines and airports across the globe deliver more highly differentiated customer experiences and improve their operational efficiency. IBM helped build the first online reservation system, Sabre, which is one of 100 “Icons of Progress,” significant company milestones over the past century that are being celebrated during IBM’s Centennial this year.

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About Air Canada:

Air Canada is Canada’s largest full-service airline and the largest provider of air transportation for passengers and cargo in the Canadian market, the Canada-U.S. transborder market and in the international market to and from Canada. The airline has 26,000 employees and serves over 32 million customers annually with direct air service to over 170 destinations on five continents. Air Canada was ranked Best International Airline in North America in a worldwide survey of more than 18 million airline passengers conducted by independent research firm Skytrax for its 2011 World Airline Awards. Air Canada is a founding member of Star Alliance™, the world’s most comprehensive air transportation network.

For more information about Air Canada, please visit www.aircanada.com, follow @AirCanada on Twitter and join the airline on Facebook.