Less than a week after exiting Sabre global distribution system (GDS) and ending a two-decade partnership, Air India has inked a new distribution deal with Amadeus.
The agreement sees the Indian carrier returning to Amadeus after it withdrew its inventory in the GDS.
The airline also has an agreement with Travelport. In late 2018 it chose the technology company as its sole distributor for its domestic flight content in its home market.
The exclusivity clause in the Travelport deal means that Amadeus’ affiliated travel sellers in India will have access to Air India’s international content only. However, Amadeus’ global sellers will be able to distribute the carrier’s full range of content, both domestic and international.
“We are glad to once again work with Air India and play a positive role in the airline’s growth strategy,” commented Cyril Tetaz, Amadeus’ executive vice president, airlines, Asia Pacific, on the renewed partnership said:
Meenakshi Mallik, commercial director for Air India, said: “We are pleased to renew our relationship with Amadeus to support our growth strategy globally and hope that this is the first step in our new journey together. We look forward to working closer with Amadeus to support agencies and travellers in the future.”
On 2 January, Sabre announced in a statement that after a 20-year relationship Air India has decided to discontinue distributing its content through the GDS, and the carrier’s content is no longer available to Sabre-connected travel agencies.
“We have worked with Air India for the better part of a year to reach a new agreement, in anticipation of the existing contract expiring and after receiving a termination notice from the carrier. Unfortunately, after extensive negotiations, we have been unable to come to a new agreement,” said Kristin Hays, vice president – global communications for Sabre.
She added Sabre would continue to work with Air India on a new agreement that would meet the needs of Sabre, Air India and travel buyers.
UPDATE: Statement from Travelport on its agreement with Air India
Travelport, in a media release on 9 january, confirmed the company is now the sole GDS provider of Air India’s domestic flights in India. “The contract, which was awarded to Travelport following a competitive bidding process, came into effect in November 2018 and was fully implemented as of 1 January 2020.
“It means Travelport is now the only GDS provider through which travel agents in India can receive both Air India’s domestic and international flight content. The company also continues to provide all domestic and international flight content from the carrier to its wide network of travel agents across the world.”
Describing the deal as a “landmark”, Martin Herbert, regional managing director for India and Sri Lanka at Travelport, said “wide and cost-effective distribution, coupled with impactful merchandising, are important to all airlines.” He added the results the carrier has already achieved since it started adjusting its distribution strategy “have been extremely positive.”
Air India’s Meenakshi Malik revealed the carrier has seen “growth of 22%” in operational profit and “cut down cost by around Rs.300 crore (US$41.82 million)” since it began changing its distribution strategy. She projects a saving of “Rs. 3200 crore in five years.”
• Featured image credit: Wikimedia Commons
