IBM has confirmed our story of last month that it is negotiating with the Soviet Ministry of Civil Aviation to supply reservation and cargo systems to Aeroflot (CI No 1,571), and says it now has agreement in principle to go ahead. The deal would be a blow to Unisys Corp: Aeroflot currently uses an antique Univac 1106-II. IBM also says it has agreed to supply an additional 40,000 personal computers to Soviet schools, on top of the order to equip 13,000 schools last August.And IBM has formed a wholly-owned subsidiary, IBM CzechoSlovak Federal Republic in Czechoslovakia. It will employ about 70 people and will have offices in Prague, Ostrava, Zlin, Bratislava, and Kosice.