Global distribution system (GDS) provider Amadeus is locked in exclusive negotiations with Star Alliance partners Air Canada, Lufthansa and United Airlines on providing a joint IT platform after talks with the only other remaining bidder broke down.
Lufthansa Systems was offering itself as an alternative to a traditional GDS-hosted approach, but has now dropped out of the bidding. The three Star partners launched the bid back in 2002 with the idea that it would form the backbone for other alliance members to join.
There is no definite timeframe to conclude the negotiations. With the three carriers and Star head office in Frankfurt all involved in the talks, an imminent decision is not expected. "We hope to close the contract as soon as possible," says Amadeus vice-president airline business Hans Jorgensen. Two of the carriers involved, Air Canada and United, are both fighting to emerge from court protection after running into financial difficulties.
Lufthansa Systems, which was working closely with IT provider Unisys, was offering to host inventory for the three partners, with sales and distribution sourced from GDSs. Prior to pulling out of the bidding process, Lufthansa Systems was in discussions with Galileo and Worldspan to source content.
The Amadeus solution includes inventory, sales and distribution and departure control. Amadeus has been working with consultancy Accenture on its bid. It is possible that IBM, with whom Amadeus has a "partnership of first choice" agreement, could yet join the bid. IBM was precluded from the original bid as it had a binding agreement with one of the other bidding parties, Galileo, which has since fallen by the wayside.
Although losing out on the Star IT front was a disappointment, Lufthansa Systems has recently seen its direct sales model go into service with Czech low-cost start-up Smart Wings. Lufthansa Systems chief executive officer Dr Peter Franke says that there are signs that IT investment is picking again after a tough couple of years. "It's starting again. People are making decisions," he says.
Amadeus, meanwhile, is hosting inventory and departure control for Qantas Airways from May through its Alt‚a Plan system. The Australian carrier's oneworld partners British Airways and Finnair will soon follow.
COLIN BAKER FRANKFURT
Source: Airline Business
