Those talks between General Motors Corp’s Electronic Data Systems and Texas Air Corp that might have led to EDS buying the System One air reservation system outright (CI No 1,268), have instead culminated in agreement to form an equally-owned venture to build and develop the existing businesses of System One Corp.A major element in the transaction is a 10-year computer services contract to be performed by EDS, valued at about $4,000m in which EDS will provide computer services to Continental Airlines and Eastern Air Lines and the EDS-System One Partnership will provide reservations services to nearly 8,000 travel agents; EDS will also acquire System One’s Airline Services Division, which provides reservations, passenger processing and flight manage ment services for about 200 air carr iers worldwide. EDS is to pay Texas Air over $250m und er the pact, and 2,200 of the 3,300 System One employ ees will go to EDS.
