3 major airlines join forces to create global reservation system

Mumbai: Even as they compete in the skies, Kingfisher Airlines Ltd, Jet Airways (India) Ltd and the National Aviation Co. of India, or Nacil, which operates Air India, are joining forces on the ground to develop and market a new ticket reservation system for airlines.
The carriers will engage a software company and travel agents to pick up a stake in the venture that will create and launch a so-called global distribution system, or GDS, said an airline executive associated with the project, on condition of anonymity.
GDS is a computer reservation system that airlines use to book and sell tickets, as well as offer other services such as hotels, cruises, and car rentals, globally. Sabre Holdings Corp. is the world’s largest GDS company; the main GDS firms in India are Amadeus IT Group SA, Abacus International, in which Sabre has a controlling stake, and Galileo International Llc.
The size and share of investment in the GDS project has not yet been finalized, said the executive. The new company will generate revenue by charging international and domestic carriers, as well as travel agents and agencies, on a per-ticket-sold basis. Current GDS systems charge $3-5 (Rs137.40-229) per ticket sold.
The idea was discussed by the Federation of Indian Airlines, or FIA, a lobbying group for domestic carriers, as well as between the three airlines, this executive said.
24/09/08 P.R. Sanjai/Livemint

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Categories: Jet Airways Sep 2008, Kingfisher Sep 2008, NACIL Sep 2008