American Airlines today announced that it has signed a five-year distribution pact with global distribution provider Worldspan, through which the GDS will access full American airfare content.
The agreement-to be implemented by August-is the first Direct Connect Availability agreement signed by the world's largest carrier in a deregulated GDS environment. In a statement, American said the content covered by the deal comprises "all published fares that the airline sells through AA.com, any third-party Web site or other distribution system, as well as private fares, where applicable."
David Cush, American Airlines senior vice president of global sales, earlier this month said the carrier still was negotiating contracts with all GDSs. However, the carrier recently became embroiled in a dispute with Sabre and Amadeus following an agreement that allows each GDS to leverage the other to access nonparticipating carriers' fares.
The move prompted American to question the legality of the new agreement and put the matter under the legal department's microscope. At the time, Cush said America would continue discussions on contracts with Sabre and Amadeus, while its legal department explores other options
(BTN, March 20).
Many carriers are in the midst of renegotiating GDS contracts-many of which expire this year-on conditions that distribution players can provide the carriers better economics. While Worldspan and American did not disclose the details of the deal, Cush in a statement issued today said, "This agreement achieves American's important business objective of decreasing our distribution costs, a critical factor for American going forward as we continue to drive towards more efficient operations throughout our business, while also providing valued Worldspan travel agents with access to our comprehensive content."