The Gemini Issue

* Gemini is a partnership between PWA,
"4 Air Canada and Covia, a subsidiary of
uv United Airlines.
y

* A reservation system consists of two
sections:

1. Hosting - the main storage and
assembly area for all flights, fares and
dookings.

2. Computer Reservations System
(CRS) - the network used by reservations
ind travel agents to retrieve all required
nformation.

'\* In order to compete and benefit from

“che American Airlines services agree-

+ nent, Canadian Airlines must transfer
ts hosting from Gentini to Sabre (both

= JSA based) but maintain its CRS with

~ Semini.

‘Ts The hosting of Canadian Airlines

_ epresents only 20% of Gemini's total

“-evenues,

ul
* Canadian Airlines has made a com-
i nercial offer to Gemini to resolve the
i mpasse but the partners have not re-
iponded.

Options

1) Bankruptcy
* Air Canada Monopoly.
* 17,000 Canadians unemployed.
¢ Canadian Airlines leaves Gemini.

2) Air Canada/Canadian Merger
¢ Air Canada Monopoly.
e 8,006 to 10,000 Canadians
unemployed.
* Shared debt load of 8.6 billion
dollars.
* Canadian Airlines leaves Gemini.

3) Restructuring of Canadian

* Keeps competition alive in Canada.

@ Control of Canadian Airlines
remains in Canada.

* $200 million employee investment.

* $246 million infusion by American
Airlines.

° $50 million federal government
backed loan repayments starting in
September.

* Increased international revenue of
$40 million yearly (based on 135
additional U.S. passengers per
day).

* Lowest job loss of all the options
(1,271 employees, Ca.:ada wide).

* Canadian Alrlines leaves Gemini.

National Transportation Agency
Ruling May 27, 1993

e American Airlines investment is not
against public interest.

* Control of Canadian will remain
in Canada.

* Gemini will not fail as a result of
American Airlines investment.

(

Canadian Airlines International

requires a commercial agreement

to de-host from Gemini in order

to continue serving the Canadian
public. The federal government
could facilitate a settlement by

urging Air Canada to join
Canadian Airlines in reaching
an agreement.

NS J

Competition Tribunal
Findings on April 22, 1993.

° The Gemini Reservations System will
not fail if hosting is transferred to
Sabre.

¢ CAI should be allowed to de-host
from Gemini with a commercial
agreement but claimed lack of
jurisdiction to impose.

® That Gemini and the Sabre Reserva-
tions System would continue to
compete in the Canadian Market.