Wednesday, July 14, 2021

Air India tells HC no favouritism in passenger service system contract

Mumbai: Air India has defended the selection of the pricier Amadeus bid for its passenger service system (PSS). This will give the airline an edge over its peers.

The national carrier made its submission in the Delhi High Court (HC) on Wednesday after rival firm Sabre challenged the tender process, alleging favouritism in the PSS contract. Sabre has claimed acquiring its product will save the airline Rs 900 crore.

The court has pushed the matter to July 22 after Sabre sought time to file its reply.

A PSS covers a wide range of functions, including flight scheduling, ticket reservation, e-commerce, loyalty programme, and departure control.

Air India invited bids for a new seven-year PSS contract in March as its existing agreement with SITA is due to end next year. Significantly, SITA is exiting the PSS business altogether.

Sabre and Amadeus submitted bids and Air India selected Amadeus for the contract. Aggrieved by the airline’s decision, Sabre moved Delhi HC against the decision. The court, however, did not grant it any interim relief and the letter of intent was issued on July 1.

14/07/21 Aneesh Phadnis/Business Standard

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