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Insight Articles

T2RL is one of the leading analysts of the market for airline IT services. Documents in this section represent our insight into the underlying trends and expectations behind the data. They are available for subscribers to download but remain proprietary to T2RL. You may not publish or circulate any part of these documents without express written permission from T2RL.


For all News and Insights related to COVID-19 please refer to our dedicated page: COVID-19 Impact

Latest Covid Impact Headlines

    The Trump administration makes a move to block Chinese carriers from the United States. The US Transportation Department said it would suspend passenger flights of 4 Chinese airlines (Air China, China Eastern Airlines, China Southern Airlines and Xiamen Airlines) to and from the US starting 16th June. The decision was a response to China's failure to let United and Delta resume flights this week to China. The Transportation Department said that China was violating a 1980 agreement between the two countries covering flights by each other's airlines. - 03/06/2020
    Worldwide cases have now crossed 6.28 million with +374,000 deaths. The USA accounts for the highest number of cases with over 1.83 million, followed by Brazil with +514,000 and Russia with +414,000. Over the past week confirmed cases in India have risen to +191,000 exceeding France, Germany and Turkey. The number of cases in Peru have also risen to +164,000, exceeding Turkey and Iran. - 01/06/2020
    As of 29th May 2020, 63 carriers have re-started their operations after a period of complete suspension and 340 airlines remain suspended. Around 140 carriers have plans to re-start limited operations during the month of June.  - 29/05/2020
    Domestic air travel in China has now reached more than 50% of 2019 volumes based on issued air tickets, according to data from ForwardKeys; Saudi Arabia has announced the resumption of domestic flights from 31st May; Japan is preparing to begin a phased relaunch of the domestic tourism sector; Bangladesh plans to resume domestic flights from 1st June.  - 29/05/2020
    More Covid Headlines

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T2RL has now completed their annual research exercise into 2019 global passenger volumes. The findings are based on a bottom-up approach (airline-by-airline) and take into account 1000+ carriers. T2RL's global passenger volume growth from 2018 is 3.5%. T2RL is continuing to research quarterly traffic for 2020 and regional monthly traffic for the top 50 carriers which can be found here COVID-19 traffic impact.
29 May 2020

In line with T2RL's current position that some airlines will not want to participate in all of the Global GDS providers, the Lufthansa Group have indicated they will discontinue participation in the Sabre and Abacus GDS from the 30 June 2020. No information was provided on how agents will service bookings that depart after that date. Lufthansa have been very careful to state they are willing to negotiate with Sabre so one possible outcome is that Lufthansa and Sabre agree terms. This could be seen as a negotiating tactic, one that is quite likely to be effective in T2RL's view. With Sabre reporting...
12 May 2020

Southwest made the decision to provide their inventory to the corporates via the GDSs together with a ramp up of corporate sales under the leadership of David Harvey in 2019. On May 4th., 2020 Southwest announced the cutover. This represents a massive step for Southwest and reverses the previous distribution policy and partner profile. The move to Amadeus' PSS some years ago will have made this implementation much easier for Southwest as Amadeus support industry standard Edifact messaging. Southwest have also taken the opportunity to implement real-time revenue reporting infrastructure to support...
04 May 2020

Billionaire investor Warren Buffett says his company Berkshire Hathaway has sold all of its shares in the four largest US airlines. Speaking at the annual shareholders' meeting, Mr Buffett said "the world has changed" because of the coronavirus.
03 May 2020

As the industry grapples with the impact of this pandemic, the following airlines have announced actual or potential reductions in workforce, as approx. 2 thirds of the global fleet is grounded for the foreseeable future; Ryanair 3,000, EasyJet 4,000 laid off for 2 mths, BA 12,000 (nearly 30% of total employees), SAS 5,000, 700 American Airlines pilots have taken early retirement, Norwegian Air 4,700, Air Canada 5,100, Air New Zealand 3,500, Transat AT 3,600 and Lufthansa predicts it may need 10,000 fewer employees in the future. Boeing is laying off 10% of their workforce through voluntary measures...
01 May 2020

Sabre and Farelogix have agreed to terminate the agreement. Sabre CEO, Sean Menke citied the UK's Competition and Markets Authority as the primary reason for the agreement's termination. Whilst there is little doubt Farelogix would have helped Sabre compete more effectively against Amadeus, the reality of the current liquidity crisis in the travel industry has affected and will continue to affect both Sabre and Farelogix. T2RL believe, that even with the current crisis there will be other suitors for Farelogix should the shareholders still wish to dispose of the asset. However the price will not...
01 May 2020

The UK Competition and Markets Authority has cited less innovation and a potential increase in fees as the main reasons to block the acquisition in the UK although the District Court in the US has given its go-ahead. Given current market conditions, T2RL expects Sabre to reflect on this decision carefully. T2RL still believes Sabre and Farelogix have limited market share in the UK. With the impact of Covid-19 on the industry, further delays to the widespread rollout of NDC are now expected and consolidation in the indirect market is likely. These conditions would be favourable to an appeal...
14 April 2020

T2RL estimate a fall of 49% in YOY passengers boarded for March 2020 due to the impact of COVID-19. Chinese airlines experienced their biggest drop in traffic in February with an estimated decrease of 87% amongst the major Chinese carriers with this recovering slightly for March. Other regions are expected to follow the trend in China with an even larger decrease in PBs for April. For more details please see our dedicated COVID-19 pages.
10 April 2020

The purchase of Farelogix by Sabre has received the go-ahead from the District Council in the US, although a final decision from the UK Competition and Markets Authority (CMA) is still pending. T2RL submitted the following document ( here) in February to the CMA regarding its provisional findings in the interests of promoting fair competition in the technology industry.
08 April 2020

Sabre have announced a 10 year partnership with Google Cloud. Whilst the press release provides very limited information, T2RL see this as a positive step for Sabre for a number of reasons. The first is that Google are deadly serious about taking a share of the enterprise IT business. The appointment of Thomas Kurian a 22 year veteran of Oracle and the assembly of a world class sales team confirm that Google are in this business to take a significant share. The second is that Google, according to T2RL's own research are very willing to provide significant and competent technical resources to support...
22 January 2020

Air Canada has completed its migration to the Amadeus Reservation, Inventory, Ticketing and Fare Quote systems. The migration, which took just over two years to prepare and complete, also includes the migration of subsidiary airlines Air Canada Jazz and Air Canada Rouge. This equates to a total of 50.9 million passengers moving from an In-House Mainframe system and increasing the Amadeus market share to 28.5%. The Departure Control System migration will follow in March/April 2020.
20 November 2019

Sabre have announced they have acquired Radixx for approximately $110 million. With the purchase Sabre have added over 35 million pbs and over 30 additional airline customers predominantly in the LCC space bringing their total market share to 17% of the global market and 5th in the LCC market. The acquisition follows the appointment of ex-Sabre SVP John Elieson as Radixx President and CEO in 2017. Sabre plans to operate Orlando based Radixx as a standalone subsidiary through its Airline Solutions business.
16 October 2019


These articles are available to subscribers only. Contact us for information this service.

Along with the rest of the industry, airline loyalty programs are struggling to deal with the impact of the COVID-19 crisis. This First View looks at why loyalty is a key area to drive recovery.
15 April 2020

Amadeus and Optym have announced that the airline network planning business of Optym has been acquired by Amadeus. This First View looks at what this acquisition means for the industry.
17 February 2020

T2RL data show 34 airlines changed their PSS provision in 2019, together migrating the management of over two hundred million passengers boarded. T2RL analyse PSS Migration data for 2019, putting this into context with previous years and the vendors who have been the most and least successful over the past five years.
03 February 2020

On September 10, 2019, IBS Software announced that it had completed the acquisition of AD OPT. This First View looks at what this acquisition means for the industry.
25 November 2019

The annual Symposium from AGIFORS (Airline Group of the International Federation of Operational Research Societies) was held in Seattle, USA from September 30 to October 4, 2019. This First View looks at the presentations given at the forefront of tech research in the airline industry.
17 October 2019

T2RL attended the ATPCO 'Elevate' customer conference in Washington DC on October 1st and 2nd. In this First View T2RL looks at ATPCO's recent activity and why they are succeeding in their reinvention.
07 October 2019

T2RL has just released its projections for the passenger air transport market out to 2029. They show growth from 2018's 4.47 Billion passengers boarded to 6.06 Billion in 2023 and almost 9 Billion in ten years' time.
05 August 2019

In a briefing from Senior Management T2RL have learned that FLIGHTKEYS GmbH will soon launch its new Flight Planning solution, FLIGHTKEYS 5D, and announce launch customers. In this First View, T2RL assesses FLIGHTKEYS' new solution and the impact it may have on the industry.
26 June 2019

GE Aviation has been the global leader in commercial aircraft engine deliveries for many years. On 18-21 February 2019, it hosted a conference in Dallas, around the theme of using data to generate insights. In this First View, T2RL look at GE Aviation's strategy moving forward and how they plan to add value from insights obtained from data.
11 March 2019

IATA continues to promote its new standard for communications between Order Management Systems, delivery and accounting systems. There have been some limited proof of concept projects and a number of airlines have committed publicly to the new standard. In this First View, T2RL look at what is needed to make this standard a success and what it might mean for the industry in the long term.
07 January 2019

Airlines, like many other enterprises, are currently subject to extensive marketing on behalf of blockchain technology providers. In this First View, T2RL looks into this new technology and where it could possibly be used by an airline.
04 January 2019

On 14th November 2018 Sabre Corporation announced that it had agreed to acquire Farelogix for $360 million in cash. The acquisition is subject to regulatory approval and is expected to close around the turn of the year. In this First View, T2RL assess the impact that the acquisition will have on customers on both sides and the industry as a whole.
07 December 2018


Full reports are available for subscribers to download. Feel free to download the extracts which give an introduction and contents table of the full report.

Service levels and governance methods date back, almost unchanged, for more than 20 years whilst the technology and services underpinned by these IT-metric-based Service Level Agreements (SLAs) and governance approaches have evolved significantly.

T2RL have undertaken an analysis to understand how service management is changing to address the challenges of new service architectures and commercial models and what further improvements are required to help achieve better business outcomes.

31 May 2020

This is the first edition of T2RL's analysis on the market recovery for the airline industry during and after the COVID-19 pandemic. This report focuses on the general market for airline services, the effect this may have on airline distribution and the GDS market and the potential impact on technology changes including NDC and ONE Order.

T2RL will update this document on a quarterly basis as new information and developments become apparent. The next edition is scheduled for August.

13 May 2020

The 'best' method of distributing an airline ticket has always been a hot topic of debate within the travel industry. This is the second edition of T2RL's report on the Distribution market taking into account where seats are sold. This edition describes the state of the distribution market prior to the coronavirus crisis and takes into account where we foresee potential changes in the near future.
01 May 2020

T2RL and partners Travel in Motion (TiM) have produced a report on the current status of NDC and ONE Order including details of projects, vendors, sellers and solutions.
30 April 2020

T2RL has submitted this document to the Competition and Markets Authority (CMA) regarding its provisional findings in the matter of the proposed acquisition of Farelogix by Sabre.

T2RL has made this submission on its own behalf in the interests of promoting fair competition in the technology industry.

The CMA's report ( here ) is extensive and covers many of the complexities of airline distribution. Nevertheless we believe that there are some subtleties that may not have been sufficiently appreciated and cause us to question the conclusions reached in the provisional findings. In this document we will set out our high-level concerns and then go on to identify the specific paragraphs of the provision findings that we believe should be reconsidered.

27 February 2020

Across the world in 2019, 22 new airlines were launched and 49 stopped flying. This report will examine the comings and goings in the industry in the year that has just ended, with comparisons to the previous years.
12 February 2020

T2RL data shows that the current market for airline loyalty members is roughly 25% of total global passengers boarded (PBs), being around 1.1 billion members in around 200 standard loyalty programmes. This report compares the market share of the major vendors in the airline loyalty market as well as the addressable market over the next ten years.
11 February 2020

T2RL and partners Travel in Motion (TiM) have produced a report on the current status of NDC and ONE Order including details of projects, vendors, sellers and solutions. The report is updated on a quarterly basis with the next update planned in April 2020.
04 February 2020

T2RL continues its research into the area of Dynamic Pricing by publishing a research paper on its findings into what airlines are actually doing in this area. What airlines are saying they will do or want to do, and the ability of the existing software to support these ambitions.
16 December 2019

T2RL's research highlights 3.9 billion passengers boarded in the market for airline revenue accounting systems. This report highlights migrations, the addressable market and key vendors by market share for 2019.
10 December 2019

NDC and ONE Order represent a new generation of technology for airline distribution, but they build on a long tradition of airlines working together to create standards that allow them to inter-operate to serve common customers. T2RL's latest research examines the need for standards in the industry. We look in some depth at the work that Amadeus, the leader in airline commercial technology, is putting into delivering the new standards to benefit the whole value chain in airline distribution.
25 November 2019

T2RL and partners Travel in Motion (TiM) have produced a report on the current status of IATA's new distribution capability (NDC) and ONE Order including details of projects, vendors, sellers and solutions. The report is updated on a quarterly basis with the next update planned in January 2020.
29 October 2019



 
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