Independence Air now participates in all four primary global distribution systems following a recent agreement with Amadeus, the two companies confirmed today. Attempting to build low-cost operations at Washington Dulles, the airline previously struck distribution deals with GDS operators Sabre Holdings, Cendant Corp.'s Galileo and Worldspan, after launching last summer with no GDS partners. Meanwhile, Madrid-based Amadeus last week also signed a content deal with WestJet, Canada's low-cost, number-two carrier.
Like Independence Air, WestJet previously signed with the other three GDS operators. The new deals will help Amadeus in North America, where its travel agency business ranks fourth in market share.
Meanwhile, Independence Air officials have said GDS access to full inventory has increased business travel sales. "Our recent increases in load factor are due in part to business booked through travel agencies and corporate customers using GDSs," said senior vice president of marketing Eric Nordling. "This new partnership with Amadeus is another important step."
GDS use among low-cost carriers in the domestic market varies widely. Some, like JetBlue Airways, do not participate in any, while others--AirTran, America West, ATA , Frontier and others--provide content to all four. Southwest Airlines famously uses only Sabre, and only on a limited level.
Following federal deregulation of GDS systems last summer, operators can negotiate more flexibly with suppliers. At the same time, many other types of distributors are pursuing low-cost carrier content, including new entrant GDS systems, traditional travel management companies through internal aggregation systems and other large distribution entities like Cendant
(BTNonline, April 8).
"We are exploring how to offer low-cost carrier incentive programs," through the Travelport and Orbitz for Business platforms, said Brian Murphy, director of supplier relations for Cendant Travel Distribution Services, citing business rewards program now offered directly by several airlines.
Meanwhile, some suggest new entrant GDSs built by G2 SwitchWorks, ITA Software and others may find a niche by attracting low-cost suppliers.
"There is a good possibility that they will be able to get the legitimate low-cost carriers that are 25 percent of the seats in the air today," said Jack O'Neill, chief operating officer of Carlson Wagonlit Travel North America, speaking this month at
BTN's Corporate Travel World conference. At the same time, legacy GDSs and many airlines "will be in heavy negotiations between now and the end of the year."