Northwest, Sabre sue each other, Worldspan threatens action

[SN30952]

The Sabre Travel Network yesterday responded quickly to Northwest Airlines' decision to impose a fee on all domestic tickets issued through global distribution systems, firing back with its own policy changes and concluding the carrier's decision "is contrary to the letter and the spirit of the DCA 3 agreements." DCA 3, or direct-connect availability three-year program, requires participating carriers to provide Sabre travel agency subscribers with access to complete fare content in exchange for segment fee discounts.
Beginning Friday, Northwest will charge $5 for each domestic ticket bought through Northwest reservations offices and $10 to buy a domestic ticket at airports in the United States and Canada. Customers and travel agents can avoid the fees by using Northwest Web sites.
Taking aim at global distribution system (GDS) segment fees, Northwest Airlines today laid out new ticketing fees that pass costs to travel agencies and consumers not booking directly through the carrier's Web site.
Northwest Airlines Corp. and a major ticket distributor have filed dueling lawsuits over Northwest's new fees for customers and travel agents who don't buy tickets on Northwest Web sites.

The new fees, from $5 to $10, prompted an outcry from travel agents when Northwest announced them on Tuesday. They also prompted an immediate lawsuit from Sabre Holdings Corp. -- a large distribution system used by travel agents.
The airline said the new fees, which will apply to all tickets for travel within the United States, will help it align distribution costs more closely with low-cost carriers.

But a Sabre move may sting Northwest quicker: Sabre said it would make Northwest fares less prominent in its displays, while charging the airline more.

"The bias they have imposed against Northwest flights are denying the flying public a fair and complete choice of both schedules and fares," Al Lenza, NWA vice president of distribution and e-commerce, said.

Copland, president of the American Society of Travel Agents, said Northwest's new fees, if followed by other airlines, could put distributors like Sabre out of business.
Sabre shares closed down $1.84, or 7.6 percent, at $22.43 on the New York Stock Exchange. Northwest shares finished up 2 cents at $9.84 on the Nasdaq Stock Market.

Also Wednesday, a new company announced that it had signed letters of intent with seven airlines to form what appears to be a new global distribution system.

Chicago-based G2 SwitchWorks Corp. said it had letters of intent from seven carriers, including Alaska Air Group Inc., Continental Airlines Inc., Delta Air Lines Inc., Northwest, United Airlines' parent UAL Corp., and US Airways Group Inc. The seventh carrier was not named.

G2 was a well-known ticket for airline staff! And for spotters, its a camera. For Sabre, Worldspan it could become a pain in.....

G2's proposed model, dubbed TrueConnect, would allow airlines to distribute content to travel agencies and other sellers at "a fraction of the cost" associated with current global distribution systems.

Northwest, along with Alaska, Continental, Delta, United and US Airways, signed the letters of intent. American Airlines is the largest carrier not identified as an initial participant.

G2 CEO Alex Zoghlin, an original architect of Orbitz, said the new solution "is both lower in price and more robust in agency features than existing global distribution systems."
The "super PNR" functionality, would enable agencies to control content and properly direct transactions into the most suitable fulfillment process.
Testing will begin shortly.

[sn26567]

American lawyers will always have a job!

[SN30952]

American lawyers will always have a job!

Ya, but will american and other travel agents keep their job?
This is a major milestone in airline distribution and sales.
They are talking of about 450 possible airlines on this single web-based market outlet.
The next step is the automated check-in...
Who's next? The automated pilot?

The following is no joke: now I hear asian businessmen saying, they do not check in any luggage anymore: If needed they buy some clothing at destination. Indeed a cotton shirt with tie and trousers cost less then 20Euros in Asia. Socks are at 0.50Euros. Hotels provide all amenities, including robes and T-shirts, as nightdress.
Why bother to queue at a luggage check in, indeed.
They go straight to the gate, with a F'LITE COMFORT, LITE* and a handheld computer with incorporated phone, camera and sound device.... and bluetooth. They even pay the bill with this handheld.

The next step is you will have to pay for your luggage or it will easier, and maybe cheaper, to have your luggage delivered to you by DHL at your destination.
Write this down, dated 26/08/2004. Later you will say, yes Fons predicted this already in Aug 2004!

* F'LITE COMFORT, LITE


And now a riddle?
How do you recognise a poor airtraveller?
(S)he has a lot of luggage...