Electronic Data Systems Corp has finally sealed its long-gestating pact with Continental Airlines Holdings Inc, but it is not quite the knock-out deal for which it had originally hoped – not least because Eastern Airlines, which was to have been part of the agreement, has vanished from the face of the earth since the deal was conceived. Under the new pact, Electronic Data will assume responsibility for all computer services for Continental and System One under a $2,100m 10-year agreement – it had been put at $4,000m at one stage. It will also acquire System One’s Airline Services Division, with its business base of more than 170 airline customers, and bring 1,860 System One technology professionals onto the Electronic Data Systems team. The agreements were signed after the US Federal Bankruptcy Court issued an authorising order to proceed.
