EDS Develops Extranet, Airline Codesharing System

<I>Plano, Texas</I> - Moving beyond distribution via the Internet, EDS by year-end plans to debut at least one "extranet" for the travel industry as well as offer its "SHARESweb" CRS on the Web.

Although its first travel applications are designed to benefit transportation suppliers, extranets could just as easily be developed to link corporations to travel vendors. Andersen Consulting currently is beta testing such a product, Via World Network, with a handful of travel managers (BTN, Feb. 24). EDS' first extranets are expected to help airlines and airports that order equipment from the same suppliers, said Nate Lanford, president of air transport services at EDS. At least one, and maybe both, are expected to be operational by year-end. "Every airline that flies airplanes needs Boeing parts," Lanford said.

Extranets are a middle ground between the extremely open Internet and the closed intranet, typically restricted only to company employees. By networking intranets and restricting access to certain areas, trade associations, corporations and even the U.S. government are developing extranets to allow individuals to collaborate, make orders or exchange ideas to accomplish joint goals. For example, Liberty Mutual Insurance Co. has developed an extranet with Staples Office Supply that allows Liberty employees to order supplies from a custom catalog online. EDS has developed an extranet for the agricultural industry that allows suppliers to talk about issues and engage in electronic commerce.

In the travel business, extranets could link groups of suppliers, resellers or agents, Lanford said.

Another product that EDS is developing is SHARESweb, an Internet booking engine that links consumers and corporations with airline inventory.

SHARESweb, announced last December, is expected to debut as soon as EDS completes negotiations with a payment vendor. Among the 26 carriers using the software are Aeromexico, AWA, Continental, Pan American, Reno Air, Tower Air and Virgin Atlantic.

Accessing any of the participating carriers' Websites, Internet surfers will be able to check fares, availability and even book.

Sharesweb will control access to each airline's database and limit the number of seats that can be booked on each credit card each day. EDS is using a credit card data encryption standard supported by Netscape to guard against fraud. Payment is due by credit card at the time of booking to protect airlines against frivolous reservations. Customers receive a confirmation number and electronic ticket.

Although the Internet might very well alter the existing distribution system, Lanford emphasized that, "In today's environment, there is no technology that can replace what happens in the CRS in terms of speed or volume. What will it be like in three to five years? As I look into my crystal ball, the processing will probably be available through the Internet."

The CRS could be at the core of interlinked technology systems. EDS owns one-third of System One and has technology contracts with both System One and Amadeus. The technology firm also is talking to several airlines about what it could do to streamline their code-sharing agreements. As a frequent flyer, Lanford said, he sees few examples of systems integration of flight operations, reservations or other systems of code-sharing partners. Ideally, Lanford would like to convince code-sharing partners to operate one flight operations center. However, airline partners could also see benefits by coordinating their systems, he added.

"We're heavily involved with three airlines in Latin America and Mexico, with Continental being a main player," Lanford said, declining to identify partners by name.

Pointing to the benefits of the streamlined operations center that EDS built for Continental, Lanford said, he's been told that the airline received much praise from customers over its handling of flights during the winter storms on the East Coast last year. Analyzing the impact the storms would have on its operations, Continental had reservationists call passengers and tell them to arrive at the airport at 5 p.m., instead of 1 p.m. for their flight, he said.

Beyond its work with airlines and suppliers, EDS is developing and integrating technology at New York's JFK and Hong Kong airports (BTN, Jan. 27). In November, Las Vegas selected EDS as the chief technology integrator for 26 new gates at McCarran International Airport. When the facility is completed, it will be the first "shared-use" airport in the country, meaning that all airlines will share all gates.

As part of its work, EDS is building an executive information system to relay data on key airport functions to airport officials and airlines, and link to the Federal Aviation Administration for the most timely and accurate flight information possible. Eventually, the database might be available to passengers via phone, computer or passenger kiosks located in airports.