Jet Airways is drawing up plans to join hands with other Indian carriers and an IT company to launch a global distribution system (GDS) to distribute airline tickets.The company currently depends on Galileo and Amadeus, the two international giants that serve as conduits to distribute its tickets to travel agents terminals around the world. For every ticket booked on these systems, airlines have to pay between $1 and $3 to the GDS company, leading to a revenue outgo of billions of dollars every year. Jet Airways paid about $40 m to GDS companies last fiscal.
Speaking to ET about the plans, Jet Airways chief commercial officer Sudheer Raghavan said there is no reason why the airline should have to payout so much to the GDS companies.
Airline industry sources said the plan was viable and could lead to a huge cut in distribution costs. Separate from Jet Airways’ plans, a group of travel agents are also reported to have chalked up plans to develop a GDS with Bangalore-based IT major Wipro.
06/04/08 Economic Times
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