Sunwing Airlines chooses Radixx for PSS
Radixx has annouced their newest airline customer, Sunwing Airlines. The airline will migrate to Radixx PSS & EZY IBE.
09 August 2018
Cambodia Airways chooses Radixx for PSS
Start-up carrier Cambodia Airways commenced operations on 10th July 2018 and is the first airline to go live on the Radixx NextGen retailing platform.
18 July 2018
T2RL's research highlights 4.18 billion passengers in 2017
T2RL have now completed their annual research exercise into global passenger volumes. The findings are based on a bottom up approach (airline by airline) and take into account 1100+ carriers. T2RL's growth for passenger volumes from 2016 is 7.7%.
30 May 2018
PROS and SAP Hybris team up for the next generation PSS and airline commerce
PROS and SAP Hybris have announced a partnership that will deliver a valid alternative for airlines seeking a solution for e-commerce and NDC compatible connections. All that's missing now is the DCS for a complete solution set and participation in the PSS market place. Most important was the demonstration at the PROS Outperform customer event of the rearward compatibility with edifact messages. This provides airlines with the ability to manage the transition to a modern digital platform and maintain part of the industry network. PROS investment in Vayant delivers priced availability, SAP's Hybris delivers the merchandising and context for attracting customers. This is an exciting development for the airline industry and will provide some impetus towards a new offer and order based architecture.
17 May 2018
Pakistan International Airlines chooses Hitit for PSS
Pakistans national carrier Pakistan International Airlines (PIA) has signed a contract with Hitit for its passenger service system on 18th April 2018. PIA will migrate to Hitits Crane platform from its current Sabre reservation system that the airline has used for the past two decades. PIA flew over 4 million passengers in 2017, and will serve as Hitits second largest PSS customer after Pegasus Airlines. No date for migration was provided in the press release.
20 April 2018
Delta Airlines cuts over to Farelogix for GDS and Partner Airline Availability Processing
Delta Airlines have cutover the Farelogix solution for the calculation of availability for all requests coming from the global distribution systems and airline partners. This is a huge step for Farelogix given the size and scale of Delta Airlines and a massive commercial win. Whilst availability processing is short logical step from the merchandising solution, availability processing is one of the "crown jewels" of airline commercial systems. New technology offers the ability to compute offers in real time on hardware of a modest cost. Amazon, Google and Microsoft have made pay as you go computing a reality offering further cost reductions in the medium to longer-term. Most airlines and their suppliers have had to work very hard and have invested tens of millions of dollars to move shopping away from the more expensive computing environments given the massive increases in volumes of transactions and availability requests from exposure of systems to users, robots and system to system interfaces. Farelogix are clearly looking to disrupt the status quo of the industry. T2RL believe that Amadeus, Sabre, Travelport and Travelsky will be paying very close attention to this news. They will be able to observe system performance first hand given their travel agencies and hosted carriers will be generating billions of requests and consuming the Farelogix responses in real-time. By successfully inserting themselves in the path between the airline inventory and consumers in the indirect channels as a 'single source of truth', Farelogix have made themselves a real target for acquisition.
11 April 2018
Jin Air migrates to IBS
Jin Air has completed their migration to IBS PSS (iFly Res) on Sunday 25th March 2018. IBS migrated Jin Air off two systems; Amadeus which was used for International and Korean Airlines TOPAS system which was used for Domestic. This contract with IBS was signed in June 2017 and the migration took just under 9 months. Jin Air is IBS's second Korean airline customer and having carried close to 8.6 million passengers in the year 2017, Jin Air now serves as IBS's second largest iFly customer after SunExpress. Jin Air will also be migrating to their loyalty platform (iFly Loyalty) later in the year.
28 March 2018
Philippine Airlines chooses Amadeus as its PSS
Philippine Airlines have chosen to migrate to Amadeus from Sabre. No date for migration was provided in the press release. Philippine Airlines flew over 14 million passengers in 2017 according to statistics published by the Philippine Civil Aviation Board in February 2018. T2RL are unable to comment on any detail about the strategy, decision and project as Philippine Airlines used T2RL's "Procure IT" solutions to issue the RFP and manage the negotiation and contracting process.
19 March 2018
Aeromexico extends Sabre PSS contract
Aeromexico have announced an extension of their contract with Sabre. According to the press release Aeromexico carried some 21 million passengers in 2017. Aeromexico have been growing at an compound annual growth rate of about 6%. No details were included in the press release on the term of the extension to the agreement.
06 March 2018
Japan Airlines Migrates to Amadeus
Last night Japan Airlines completed their migration to the Amadeus Altea PSS. The program of work was one of the longest for Amadeus with significant development required to complete the necessary gaps for operation of the Altea platform in the Japanese market. The Amadeus cutover is a significant step forward in the retirement of the JALCOM system. Japan Airlines will roll out the Amadeus departure control system (DCS) over a period of time which limits the potential for disruption and provides for a smoothing of migration resources.
16 November 2017
Flybe chooses Amadeus for PSS from 2019 onwards
Flybe and Amadeus have announced a partnership to deliver the core digital infrastructure to support the airline's transformation under the leadership of CIO, Peter Hauptvogel and CEO, Christine Ourmières-Widener. Hauptvogel is one of the most experienced airline CIOs in implementation and migration. Flybe will be moving from DXC's Shares platform towards the end of the year of 2018. The loss of another Shares customer will leave DXC with two major customers United and Copa at the end of 2018.
06 November 2017
Sabre renews PSS contract with Ethiopian Airlines
Sabre have renewed their contract for supply of PSS with Ethiopian Airlines. T2RL believe that the extension takes Ethiopian out of the addressable market until at least 2024 and secures an important revenue stream for Sabre going forward with this ambitious and fast growing airline.
31 August 2017
PROS acquires Vayant
PROS have made the step from revenue management and dynamic pricing to a full offer management solution set by acquiring Vayant. PROS are by far the market leader in the provision of revenue management technology to airlines as measured by total passengers boarded. The acquisition of Vayant creates significant new opportunities for PROS to expand their footprint in their customers and challenge the PSS providers for priced availability as a cloud based service. This offering is particularly relevant today as airlines look to new ways of doing business including IATA's NDC and One Order.
03 August 2017
American Airlines to pay agents an NDC Incentive of $2.00 per segment for AA marketed flights
American Airlines (AA) has led the charge to direct connections and always been willing to take on the challenges associated with GDS distribution. This step is a move to incentivise those agents and drive adoption of the NDC standard. By paying $2 per segment for all AA marketed flights they are now competing with the GDS in some segments of the agency market that currently receive little or nothing in terms of incentives. T2RL's research suggests that GDS incentive money is not evenly spread. The OTAs and larger TMCs receive far more than their fair share of the booking fee incentives. This allows smaller agents to compete with their larger rivals with AA content.
23 June 2017
Malaysia Airlines and MasWings migrate to Amadeus
Malaysia Airlines completed their migration from the SITA PSS to Amadeus on June 11th. The airline, which reported over 15 million pbs in 2016 (Source: T2RL) migrated their Reservations, Inventory and IBE over to Amadeus along with their subsidiary MasWings.
12 June 2017
T2RL's research highlights nearly 3.9Bn passengers in 2016 vs. IATA's 3.7Bn.
T2RL have now completed their annual research exercise into global passenger volumes. The findings are based on a bottom up approach (airline by airline) and take into account some 1000+ carriers. The addressable market for solutions based on passengers boarded is therefore around 5% larger than that provided by IATA which was reported at 3.7Bn. T2RL's growth for passenger volumes from 2015 is 8.6%.
27 May 2017
British Airways and Iberia will follow Lufthansa's policy on surcharging GDS bookings
Finally after considerable speculation, British Airways and Iberia have written to the travel agents to indicate they will levy a surcharge on bookings made via the GDS. The surcharge will incentivise travellers to book with those travel agents that use direct connection technology over a GDS or to move to the airlines own websites. British Airways will also provide an agent portal for bookings for those that do not have direct connect technology. This move has been anticipated for some time and is not a surprise.
26 May 2017
Air Berlin will not migrate to Sabre
Sabre have filed a document to indicate they will be recording a charge of between USD 80 million and 100 million less sums due from Air Berlin in their accounts. Generally PSS providers capitalise the costs associated with implementation and set up of new customers and then amortise this amount over the term of the agreement according to their accepted accounting principles. The amount Sabre have quoted seems very high for a carrier the size of Air Berlin. T2RL conclude that there must have been considerable customisation of the solution combined with implementation services delivered over an unusually long period of time for the amount to be so high. It is also clear from the filing that there is a termination fee in the PSS contract and that Sabre expect to get this fee. Given Air Berlin are not moving to Sabre it is very likely that they remain on Amadeus and other custom developed solutions for the forseeable future.
25 May 2017
New leader for Sabre Airline Solutions is Dave Shirk
Sabre have appointed Dave Shirk to lead the airline IT unit to replace Hugh Jones. Sabre have selected an executive with technology product management expertise rather than an airline industry executive. Dave arrives at a time when Sean Menke's team have some significant challenges ahead. They have to deliver a competitive product portfolio in the commercial systems segment against a competitor that has significant advantages in technology, economies of scale and service presence. T2RL's research suggests that price competition will intensify in the coming years as the PSS/GDS system providers seek to win the inventory system that prevents longer term disintermediation in the GDS business and locks in the industry marketing architecture of class, fares via ATPCO or other standards and schedules.
27 April 2017
Farelogix enters the pricing solution market with Canada's Westjet.
Farelogix announced their intention to provide pricing and shopping functionality in November 2016. Westjet is their pricing and shopping launch customer. Farelogix have been successful in expanding their footprint inside WestJet. The announcement suggests that Farelogix's value proposition is tied to a reduction in costs associated with support for significant look to book ratios driven by system to system connectivity and robotics.
06 April 2017
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