Galileo last week announced that it signed a new five-year full-content deal with Northwest Airlines, making the global distribution system the first to come to new terms with all of the Big Six carriers since deregulation. Meanwhile, Amadeus last week said it signed a "long-term" content agreement with US Airways, representing the global distribution system's first distribution pact with a major U.S. carrier since deregulation.
The agreement gives Amadeus subscribers the "full range of fares for flights sold in the United States, Puerto Rico and the Virgin Islands" for US Airways, including flights operated under the America West brand. Likewise, Northwest will provide Galileo with all published fares, while the carrier also entered into "a new strategic partnership" with CheapTickets—which, like Galileo, is a subsidiary of Travelport—and affiliates to "provide Northwest's full range of product, services and inventory to their customers," Travelport said in a statement.
While the carrier would disclose terms, Northwest vice president of distribution and e-commerce Al Lenza said the deal, "helps us meet our key business objectives of making our product as widely available to consumers as possible, while achieving competitive economics." Lenza said the deal would give "full content" to customers, "while also lowering our distribution costs."
Amadeus also said it recently signed a similar agreement with Air Canada for flights sold in North, Central and South America, but noted that does not include Tango fares, which the carrier removed from GDSs
(BTN, May 15)."Additionally, Amadeus has an ongoing agreement with United Airlines for access to full content through December 2006," a spokesperson noted by e-mail.
Amadeus said it is in ongoing discussions with "all of the major carriers in North America regarding content distribution" and that the GDS "has secured a variety of extensions on its current content agreements to further facilitate negotiations focused on reaching long-term deals."
Amadeus said that it could not disclose details of its agreements.
The other major GDSs have forged ahead of Amadeus in securing new agreements with major U.S. carriers, many of which expire this year. Sabre has deals in place with Continental, Delta, Northwest, United and US Airways. Galileo has new terms with American, Continental, Delta, United and US Airways. Worldspan so far has structured deals with American, Continental, Northwest and United. However, Amadeus in March secured an agreement with rival Sabre, through which the GDSs can leverage the others content should a carrier not participate in both GDSs
(BTN, March 20)."We are optimistic that our discussions, although complex and challenging, will result in successful and sustainable outcomes for the distribution chain and, ultimately, the travel industry," said senior vice president of the airline business group for Amadeus North America Peter von Moltke.