Posted April 20, 2011

AA: Distribution Disputes Hurt Q1 Revenue

American Airlines acknowledged its distribution approach diluted revenue during the first three months of 2011, a period in which it briefly pulled out of some channels, litigated with distributors, expanded its Direct Connect strategy and found itself the target of distributor biasing. The revenue impact lessened as the quarter wore on, AA executives claimed, adding that they remain confident the strategy will help it make revenue gains in the long run.

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Posted by: Jay Boehmer | More by Jay Boehmer
Posted April 20, 2011

AA Confirms Initiation Of Priceline Direct Transactions, Comments On Travelport Suit

American Airlines' first-quarter performance was slightly better than it was a year earlier, but that's a hopeless way of spinning a net loss of more than $400 million.

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Posted by: Jay Campbell | More by Jay Campbell
Posted April 19, 2011

Delta Signs Farelogix For Alternative Platform

Delta Air Lines on April 12 signed an agreement with Farelogix to offer later this year an Open Axis-based XML interface for its content and to power bookings with ARC settlement on Delta's WorldAgent Direct, according to a spokesman.

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Posted by: Jay Campbell | More by Jay Campbell
Posted April 18, 2011 - New York City
Chris Kroeger

INTERVIEW: Sabre's Chris Kroeger

The Beat's Jay Campbell met with Sabre Travel Network senior vice president of marketing Chris Kroeger during an Association of Corporate Travel Executives conference here last week to talk about direct connections and the global distribution systems' role in enabling optional airline services. A lightly edited transcript of the discussion follows.

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Posted April 13, 2011

AA Invokes 'Relevant Submarket' Concept In Monopoly Claim Against Travelport

American Airlines officials have said that distribution is the carrier's fourth-highest cost after fuel, labor and aircraft ownership and maintenance, but legal expenses must be creeping up there, too, as the company is again suing key distributors. In a complaint filed Tuesday in U.S. District Court of Northern Texas, AA is going after the fundamentals of global distribution system-travel management company financial relationships in accusing GDSs--specifically Travelport--of monopolistic behav Read More »
Posted by: Jay Campbell | More by Jay Campbell
Posted April 12, 2011

AA Preparing For 'Expected Changes' In GDS Agreements This Summer

American Airlines confirmed it has told travel agencies how it would tweak its Source Premium Policy, which levies per-segment fees on global distribution system bookings, "to accommodate expected changes in our GDS agreements later this summer," according to a spokesman for the airline.

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Posted by: Jay Campbell | More by Jay Campbell
Posted April 12, 2011

Sabre: AA Threatening Segment Fee For Nonparticipants In Direct Connect

American Airlines is telling some travel agencies that they will be expected to pay a new $5.50 per segment fee and face "less than full content" if they do not sign up for the carrier's Direct Connect program, according to a letter sent by Sabre to agency subscribers.

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Posted by: Jay Campbell | More by Jay Campbell
Posted April 7, 2011

Sabre, You Get A Mulligan

Dear Sabre,

I know many people pit us as enemies. But I consider us more like longstanding colleagues who often disagree, but still show up the next day for a game of checkers. OK maybe we’re unlikely to sit and play checkers… but my point is, and I hope you’d agree that, throughout our ups and downs, we have managed to handle our disagreements with professionalism and respect as relates to publicized debates. We have even ended up as compadres on some industry issues! Read More »

Posted by: Jim Davidson | More by Jim Davidson
Posted April 6, 2011

COMMENT: Time For Climb-Downs On Direct Connect

Now that a path forward for airline direct-connect initiatives is all but assured, given Expedia's decision to sign up for American's, it will be interesting to watch industry organizations evolve their respective positions. It will be tricky for some.

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Posted by: Jay Campbell | More by Jay Campbell
Posted April 5, 2011

Re: AA-Expedia Announcement

While there are a lot of details we'd all like to know, this release clearly supports the idea that the airlines' push to migrate from the traditional method of distributing information is not limited by technology. Read More »
Posted by: TRWTravel | More by TRWTravel
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