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Posted Sept 1, 2010
Posted Aug 20, 2010
Air France-KLM U.S. vice president and general manager Christine Ourmières recently updated us on corporate contracting among SkyTeam's joint venture partners (including Delta). I also asked her about a few distribution topics. Joint alliance-GDS negotiations? Don't hold your breath. Revised agency compensation programs for Delta's TMC clients? There were some questions at first, but now everything is cool, according to Ourmières.
Posted Aug 19, 2010
Consultant Terry Jones, best known as the founder of Travelocity, doesn't think the global distribution system execs should be concerned about Google's planned acquisition of ITA Travel. He also said people in his circles expect Google to spin off ITA's reservations business. Here are some tidbits from my interview with Jones, also a Rearden Commerce board member, chairman of Kayak and former CIO of Sabre, at the National Business Travel Association convention last week.
Posted Aug 2, 2010
For those keeping score at home, we have posted this hopefully handy chart of deadlines for U.S. airline-global distribution system participation agreements. To include the months of expiration would be a bit onerous, but you get the picture. Of note, all "full content" GDS agreements for Alaska, American and US Airways expire next year.
Continental Airlines would be in the same situation if it didn't last month announce an extension to its Travelport deal. Although the deadline for its Amadeus agreement is not clear, Delta is in no rush to come to new terms with Sabre and Travelport. United on Aug. 4 announced an extension to 2013 with Travelport, meaning none of its deals expire next year. We'll update this post as results come in. Let us know if you can fill in any blanks...
|
Amadeus |
Sabre |
Travelport |
| AirTran |
ND |
2011 |
ND |
| Alaska Airlines |
2011 |
2011 |
2011 |
| American Airlines |
2011 |
2011 |
2011 |
| Continental Airlines |
2011 |
2011 |
2013 |
| Delta Air Lines |
ND |
2013 |
2013 |
| JetBlue |
ND |
2012 |
2012 |
| Southwest Airlines |
NP |
ND |
2017 |
| United Airlines |
2012 |
2013 |
2013 |
| US Airways |
2011 |
2011 |
2011 |
ND = Not Disclosed
NP = Not Participating
Sources: GDS company statements, industry sources, The Beat |
Posted Jul 27, 2010
Now that the Google acquisition has been announced a great deal speculation has emerged as far as Google’s intentions. Given the fact that regulatory approval is required and that the deal has not been completed, ITA itself has been unable to speculate on Google’s strategy. Google has devoted some energy in stating that it will not become a seller of travel, but hasn’t disclosed specifics on their plans other than stating that it will improve the consumer shopping experience.
Posted Jul 27, 2010
If you want to place blame for tarmac delays, bad airline customer service, and nickel & diming fees -- look no further than how you yourself purchase plane tickets. As consumers, we choose to purchase services based on any number of criteria that are important to us. In return, suppliers of these services cater their strategies to try to meet our needs and win that business.
If we purchase things as a commodity, it will get sold as a commodity. Plain and simple.
Posted Jun 25, 2010
Posted Jun 7, 2010
IATA director general Giovanni Bisignani today once again took the occasion of the group's annual general meeting to lash out against global distribution systems. Two years ago, he suggested airlines are "held hostage to GDSs." Last June in Kuala Lumpur, he said that airlines "cannot accept" $4 per transaction fees charged by "Western" GDSs. Today in Berlin, it was clear that his language had become more colorful and combative.
Posted May 12, 2010
Farelogix is highly supportive of management and settlement standards being developed around the merchandising process. We have been the leaders in developing the first ARC certified EMD (both EMD-A and EMD-S), which is in full accordance to the IATA reporting standard. Farelogix merchandising solutions also fully support ATPCO fare filings if airlines opt to use ATP instead of alternative merchandising solutions in the market.
However, Farelogix is concerned about the recent announcement to extend the "standards movement" to the actual airline product definition and sales process.
Posted Apr 30, 2010
We published in The Beat an interview with US Airways president Scott Kirby that not only echoed American Airlines' view that it should not have to pay global distribution system firms for distributing ancillary services, but did so again and again.
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