The Star Alliance last week made good on its promise to select alternative distribution systems by the end of this year, though the extent to which the partnership's airline members will make use of platforms furnished by winning bidders G2 SwitchWorks and ITA Software remains to be seen.
During an alliance meeting last week in Montreal, Star said the new contracts with the two new-entrant distribution companies would help its members reduce their aggregate $2 billion annual tab for global distribution system fees and "move forward in setting new industry standards in the area of airline distribution," said Star CEO Jaan Albrecht.
Beyond a general timeframe-implementing first in North America, then expanding to Asia and Europe within 18 months-Star provided no details about the new "umbrella" contracts. It said each alliance member individually now would work with G2 and ITA "in order to build a tailor-made solution for their specific requirements, with the ultimate aim of better serving the needs of the international business travelers."
Star Alliance in June conveyed plans to choose distribution partners by year-end
(BTN, June 2). That announcement followed Star founder United Airlines' proposal last winter to travel management companies in which the carrier would pay incentives to those willing to shift bookings from legacy GDSs to newer systems
(BTN, Feb. 7). Though few TMCs specifically have communicated acceptance of United's program, the airline last spring claimed it already had progressed on processing tickets through both G2 and ITA
(BTN, May 16).