Saturday, November 20, 2021

Delhi HC upholds AI's passenger service system tender award to Amadeus

Mumbai: The Delhi High Court has refused to set aside Air India’s decision to award the passenger services system (PSS) contract to Amadeus and dismissed rival firm Sabre’s plea in this regard.

“We are not inclined to grant any relief to the petitioner (Sabre). The petition is accordingly rejected,” a division bench of the Delhi High Court said in their judgment on Wednesday.

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

Air India had invited bids for a new seven-year PSS contract in March as its existing agreement with SITA is due to end next year.

Sabre moved court in June after Air India selected Amadeus for the contract and accused the national carrier of favouritism in the selection process. It said the selection criteria was tailored to suit Amadeus. Sabre further claimed that acquiring its product would save Air India Rs 900 crore.

While Sabre’s financial bid was Rs 1,039 crore, Amadeus quoted Rs 1,957 crore for the contract. Sabre’s overall score under the quality-cum-cost-based selection method was lower than Amadeus' and so it was not selected for the contract.

The High Court observed that in order to interfere in commercial transactions, it must be satisfied that some element of public interest exists.

“The submission of the petitioner, that keeping in mind Air India has financial distress and is being disinvested, such a tender is not in public interest cannot be accepted. The need of a passenger service system is the need of the hour for Air India, considering its existing service provider would stop providing services from June, 2022,” the division bench noted.

19/11/21 Aneesh Phadnis/Business Standard

To Read the News in full at Source, Click the Headline


Post a Comment