Tapani Tears GES S

THE GEMINI ISSUE.

Gemini is a partnership between PWA, Air Canada and Covia, a
subsidiary of United Airlines. Every transaction made by a Gemini
travel agency is processed through Covia's American operations centre
in Denver, Colorado.

There are two aspects of Gemini's business:

- Computer Reservations System(CRS) which displays the product

of all subscribing airlines to travel agencies for bookings.

- Hosting, which is the storage of an airline's internal inventory

data on flights, fares and bookings.

In order to benefit from the computer-driven services to be provided by
AMER under the Services agreement, CAI must be able to connect its
inventory data, currently hosted by Gemini to the AMR computers
(Sabre system).

The hosting of Canadian Airlines represents about 20% of Gemini's total
revenues and staff, Canadian Airlines wishes to continue to use Gemini's
CRS services.

Canadian Airlines International requires a commercial

agreement to de-host from Gemini in order to continue
serving the interest of the Canadian public. The Federal
Government could facilitat 1 settlement by urging Air
Canada to join with Canadian Airlines in reaching a timely
agreement. :