Monday, November 13, 2006

IA spreading wings to retain second slot

New Delhi: After deciding to take on lease five A320s and six regional jets, state-owned Indian Airlines is likely to go live on all the major global distribution systems (GDS) in the country by next week including Galileo and Amadeus, industry sources said.
With the low cost phenomenon catching up in the country, the full service carriers are losing out on the yields, and therefore the move is seen as a calculated measure to maximise on the availability.
The final deal with GDS providers is expected to be signed on November 16. Earlier, the airline for its domestic distribution depended on only Abacus, which offered services for only 60 cents per segment, i.e.,one flight. But being available on only one GDS restricted the airline’s reach.
By extending to others, IA will have to shell out almost $1.6 to $1.8 per segment but will get access to 27,000 more dedicated terminals and 11,000 travel agents in the country just through Galileo and Amadeus, thereby ensuring a larger customer base.
13/11/06 Atreye Dev Roy/Financial Express
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