Another Take on Sabre and American Airlines Dispute

Travel Weekly reports that accusations by American Airlines of Sabre offering to sell competitor's passenger data just might be a clever ploy during contract negotiations. Earlier this year there was a Jupiter Research report about a clever ploy by Sabre involving American Airlines getting picky about contract renewal. If this gets any more clever (is there such a word as cleverer?), the Government might step in (horror of horrors).

Bumping is Back

Bumping is back so that must mean overbooking is also. Those with a memory longer than a fruit fly's will recall that airlines creating bumping when they began to intentionally oversell flights with a science called yield management (now called revenue management). Passengers in the States are getting bumped more frequently than at any time in the last six years says USAToday. Southwest Airlines bumped nearly 32,000 passengers in the quarter, more than any other airline. You could blame the computers or the distribution, says Nick Bredimus, an airline consultant. But, Southwest is also unique and carries more passengers than most.

Malev in with oneworld Global Alliance and Airlogica

The Hungarian Airline Malev is joining the oneworld alliance for global travel. Most of the oneworld members use software from Airlogica, and Malev will be no exception. After a review of competing solutions, Malev announced that the Zeus product from Airlogica was "developed based on the experience and input of airlines experts around the world”. Malev joins a growing list of airlines that are carefully analyzing their distribution data.

Delta to Outsource IT work to IBM

Delta Air Lines has asked a US bankruptcy court to approve outsourcing some computer-related work to IBM in a move that could cut 200 jobs. Delta has its own computer infrastructure used for reservations, record-keeping and communications, through its unit Delta Technology. Delta also outsourced 1000 call-center jobs to India in 2003. And, they have handed off operation of human-resources functions to Affiliated Computer Services. Now, if they could only outsource the flying...

Mission: Move the Cost of Distribution

Timothy J O'Neil-Dunne, travel industry consultant and managing partner - T2Impact Ltd, was quoted today in Travel Distribution News. He says, in part, "... a new conflict is emerging; the Suppliers globally are on a mission to move the cost of the distribution system to the intermediaries and users. So far they seem to be quite successful...". O'Neil-Dunne has in the past called the GDSs "endangered" and ASTA has attacked the opt-in contracts. So, the mission must be to the sole benefit of the suppliers (airlines in particular).

Travel Agents Play Waiting Game

Travel Weekly has published a complete account of the GDS deadlines for opting-in to full content contracts. There is some speculation that the deadlines will need to be postponed while agencies check with their corporate accounts and lawyers. Many agents must wish they could turn back the clock to the days when the GDSs were fighting for their favors and offering huge incentives. What a difference a few years have made in airline distribution.

Bad Vibes from ASTA

It is ASTA’s opinion that American Airlines's announcement regarding full content GDS deals threatens to throw the industry into chaos. A/A will levy a $3.50 per segment fee on all travel agency bookings made through what it calls “high cost” booking channels. This means bookings made by ALL Sabre and Amadeus subscribers. Of course, other airlines quickly matched with announced deals of their own. Is that what ASTA means by chaos?