US Airways and Sabre agreed to a "multi-year, full-content distribution and merchandising agreement," with the carrier planning to make its fares, schedules and ancillary content--namely Choice Seats--available through Sabre's global distribution system. Choice Seats, according to a Sabre spokesperson, would be available for sale through Sabre-connected agencies "in the coming months."
Effective immediately, the deal supersedes the previous Sabre-US Airways agreement, signed in 2006 and set for expiration this quarter, according to the Sabre spokesperson who would not provide details on the length of the new deal. Also scheduled to expire this year are Sabre's dealswith Alaska Airlines, American Airlines and United subsidiary Continental Airlines.
The Sabre spokesperson said Sabre and US Airways "are in the midst of working on our systems now to bring Choice Seats into the Sabre GDS." US Airways president Scott Kirby in January outlined the revenue potential for third-party distribution of Choice Seats, through which customers pay an additional fee to select favorable coach seats, and indicated it could reach $300 million once the option is available in all distribution channels.
The Sabre spokesperson added that Sabre expects to offer other US Airways optional services but deferred to US Airways to provide more details. US Airways did not immediately provide comment. [The airline subsequently issued a statementconfirming its new Sabre deal but also indicating that it "disclaims any characterizations by Sabre of US Airways' views of Sabre, Travelocity, or US Airways' relationships with those companies."]
US Airways in January announced a new distribution deal with Expedia that also calls for the sale of Choice Seats, though that initially would be accomplished through a link to the carrier's website. The technology ultimately to be used for Choice Seats distribution via Expedia had not yet been determined.
In the absence of new GDS deals at that time, US Airways in November indicated efforts to work directly with travel agencies to sell Choice Seats.
Despite the revenue opportunity, Kirby last year told The Beatthat US Airways was "not willing to pay extra" for Choice Seats distribution through GDSs. Asked about the financial model around selling ancillaries, the Sabre spokesperson said, "We do not charge airlines to sell their ancillaries."
Sabre also announced a separate agreement to make US Airways' "fares, flight information and ancillary services" available to Travelocity via the Sabre GDS.
The article originally was published in The Beat