Did United choose the best rez system?

The decision by United Airlines’ management to use Continental’s Shares reservations system for the merged carrier has been causing serious problems since its implementation last weekend. So the news that the airline is working on a new version of its IT platform, integrating some of the features of the pre-merger United’s Apollo system, is very welcome, indeed.

It was hardly surprising that CEO Jeff Smisek and his team chose to keep Shares, given that most policies and practices of the combined carrier have followed the way Continental did business under Smisek. But in this case, the decision made good financial sense — Continental has owned Shares for years, while United paid Travelport, the company that owns Apollo…

Airlines, want better GDS model? Unite!

One by one, airlines are waking up to the sobering reality of the modern Global Distribution System (GDS) model, which they created decades ago. Two carriers have now taken legal action, and this is only the beginning. If more airlines want to see changes and lower costs, they should join forces instead of watching from the sidelines.

Judge Miriam Goldman Cedarbaum of the United States District Court for the Southern District of New York is about to become an expert on airline data distribution — in the 82nd year of her life. You can see her name stamped on a complaint (pictured above) filed last week by US Airways against Sabre, the largest GDS in the United States…

American wins first battle in data war

The new airline data distribution model I predicted in February has just become a reality. Expedia, the most popular online travel agency, agreed this week to carry American Airlines data hosted by the carrier’s “Direct Connect” channel. Expedia’s consolation prize is that it will use Global Distribution System (GDS) aggregation technology.

Since Dec. 31, when its contract with American expired and it decided not to renew it, Expedia had been resisting the airline’s attempts to move to a direct channel. Why? Because it wanted to continue to receive sizable kickbacks from Sabre, the GDS it uses to display and book flights. American insists on “Direct Connect” for two reasons…