Amadeus Wins British Airways Parent Over to Its New Way of Selling Fares
Skift Take
Amadeus's deal with International Airlines Group shows a path forward in the contentious contract disputes it has had with many airlines over distribution costs and methods. The technology giant's earnings report on Friday was broadly in line with expectations.
Amadeus said on Friday it had signed a contract with International Airlines Group (IAG) to distribute airfares for British Airways, Iberia, Aer Lingus, and Vueling to travel agents through Amadeus's reservation systems using the new distribution methods the airline group has championed. The deal is a notable about-face for the airline group and a victory for the technology giant.
In 2017, International Airlines Group added a surcharge on tickets booked through the three largest middlemen for distributing tickets to travel agencies: Amadeus, Sabre, and Travelport. It followed the move of Lufthansa Group, which pioneered the effort in 2015. Air France/KLM Group soon copied its peers. All of the airlines began using their own technology to distribute their content without the fees to travel agencies to gain negotiating leverage with the tech middlemen.
But in September 2020, Air France/KLM Group signed a landmark deal with Amadeus. It agreed to distribute its content without the sam
