Sabre Executive Sees Truce In American Airlines' Standoff
DENVER (Dow Jones)--Sabre Travel Holdings Inc. is unlikely to pull the plug on selling American Airlines flights at thousands of U.S. travel agents next month, a senior executive said Monday.
American, a unit of AMR Corp. (AMR) has been embroiled in disputes with Sabre and other travel intermediaries that sell its fares and schedules on to agents, and their existing contract expires at the end of the month.
Pulling flights distributed via Sabre would have been far more damaging to American than the temporary loss of business earlier this year from Orbitz Worldwide Inc. (OWW) and Expedia Inc. (EXPE). Sabre's focus on agents would hit high-margin business travel, while the online companies deal with more leisure traffic.
"Our expectation is that there won't be a service disruption," said Tom Klein, Sabre's president.
"We've given [American] a viable path to stay in the system," Klein said in an interview on the sidelines of an industry conference in Denver.
American has told travel agents it is confident Sabre will continue to allow its flights to be sold next month, even if it has to secure a court order to ensure continuity.
"Being removed from Sabre would cause massive disruption and harm to our business, the business of agencies and to Sabre, itself, so we remain hopeful we will not be put in that position," said an AMR spokesman in an emailed statement.
A court hearing on Anmerican's request for an injunction requiring Sabre to keep displaying its flights has been pushed back to Sept. 26.
American has spearheaded an escalating skirmish among airlines and the intermediaries--known as global distribution systems, or GDS--as contracts signed in 2006 come up for renewal, with increasing frustration among carriers about the structure of the industry. The major GDS operators are also being investigated by the justice department over alleged anticompetitive behavior.
The U.S. deregulated the GDS sector last decade and, while there were concerns that its concentration among three main operators could stifle competition, regulators expected a wave of online new entrants to emerge and put pressure on GDS leaders such as Sabre and Travelport.
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GDS operators provide travel agents with airline fares and schedules and form a crucial link with premium corporate customers. American has already extended content agreement with Travelport's global distribution systems--Apollo,
Travelport, the business services provider to the global travel industry, today announces an extended multi-year GDS agreement with Webjet, one of the leading online travel agencies in Australia and New Zealand. The new agreement comes into effect
The multi-year agreement covers Holiday Inn Club Vacations' six resorts, which feature suites and villas with a range of amenities to suit many types of vacationers. The resorts again continuing in the RCI Points(R) and The Registry Collection(R)
After visiting a hospital and announcing the renewal of an existing health-care agreement for the country's three northern territories with the local premiers, Harper said his majority government is prepared to make compromises in the coming weeks as
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Air Seychelles/Air France code share agreement renewal | News ...
Seychelles’ tourism development is to largely benefit from the signing of a new joint air services agreement between Air France and Air Seychelles, effective June 1 of this year.
The agreement was signed between Air Seychelles Executive Chairman Maurice Loustau-Lalanne and Air France’s Senior Vice President for International Affairs and Alliances Dominique Patry at the Air Seychelles head office at Seychelles International Airport today.
Also attending the signing ceremony was the Principal Secretary for Finance Ahmed Afif; the national airline’s board directors and senior management staff; and Alain Malka, Air France Senior Vice President, Caribbean and Indian Ocean. Officials from Air France’s Alliances and Indian Ocean were also present.
The agreement was signed following a review by Air Seychelles on its operations to Europe and after two rounds of talks both in Paris and Seychelles during the past two months.
The long-standing partnership between the 2 airlines started 14 years ago in 1997. According to the codeshare agreement signed in 2009, Air Seychelles operates the Seychelles-Paris route, and the seats are being shared among both airlines. Each company remains responsible for the commercialization of its capacity.
The terms and conditions of the new agreement aim at improving the route economics for Air Seychelles, thanks to a new balance between seat price, capacity share, and fuel costs adjustment mechanism.
In this way, Air Seychelles and Air France show their commitment to ensure the continued existence of a top-quality service, with up to 6 weekly frequencies on Paris CDG.
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Pegasus Solutions have finalized a renewal agreement with Orbitz. ... "Orbitz' renewal with Pegasus reiterates that the online travel and hotel sectors continue to recognize the ...
