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Amadeus to buy Accenture's Navitaire - First View Analysis
Amadeus' bid for Accenture's Navitaire has the potential to change the PSS market structure for some time. Most customers are unlikely to oppose the deal, but a few commercially savvy airlines will seek to lower cost and improve terms from the acquisition. The deal presents some regulatory risk specifically in Europe, although Amadeus will have undoubtedly taken advice that the markets are quite different.

Lufthansa moves on Distribution Cost
In response to Lufthansa's announcement with respect to passing on charges in the GDS channel from 1 September 2015, T2RL have developed a First View perspective and insight for clients.

Sabre Wins LATAM's TAM and Displaces Amadeus
LATAM announced their decision to select Sabre as their single PSS platform on 05 May 2015. This is a big deal for Sabre as it secures their inventory footprint in Latin America with the largest regional carrier. Securing inventory is a critical piece of the puzzle for any PSS/GDS supplier and Sabre will be the dominant PSS provider in the region following cutover to Sabre. Combined with COPA's recent win, Sabre now have a solid, long term IT platform in Latin America. Execution will be challenging, however the current economic climate provides urgency to get this work done.

Radixx and Flydubai Secure their Futures
T2RL consider the Flydubai / Radixx news and agreement as important for airline buyers of PSS. The source code licence option is unusual for such a small carrier. The last major source code deal was Delta Airlines with Travelport. The deal is therefore worth commentary from T2RL's analyst community.

Distribution Heatmap 2015
T2RL's research team met in Whistler, Canada from 13th. to 17th. April 2015 to define the key issues facing airline distribution executives for the coming year. The GDS' are thriving and like any business they continue to exert pricing power when they have the opportunity to do so. LCC's are participating in the traditional distribution architectures and are well placed to take advantage of the infrastructure developed and tuned by the traditional carriers and their vendors. Market dynamics are challenging with market concentration and consumers access to technology.

Guestlogix takeover OpenJaw - aiming for one stop shop for ancillaries
Guestlogix has bought out the ancillary packaging software company, OpenJaw for $41.2 million in a deal that will add more heat to the airline merchandising market.

Amadeus wins Japan Airlines International and Domestic Passenger Services Business
Amadeus have consolidated their position in Asia as the dominant supplier of passenger services technology by announcing a long-term agreement with Japan Airlines.

Emirates Breaks with the PSS Market Trend, First or Last?
Emirates have made the decision not to move ahead with Amadeus' PSS solution after a long and expensive process for all parties. This is not as much of a blow for Amadeus as it is for the outdated marketing automation structures.

IBS Progress Further in Japan with Vanilla offering
IBS and ANA announced they have entered into a contract on 5th February 2014 for the provision of PSS and other services to Vanilla Air. IBS is no stranger to ANA, with ANA having worked with IBS on the ultimately successful development and implementation of the IBS iCargo platform, launched back in February 2009. IBS have had some success in a demanding and difficult Japanese market place.

Emirates PSS Decision Deferred
With no announcement despite considerable investment in a long procurement process it is clear Emirates President Tim Clark requires more evidence that Emirates can not remain independent with respect to PSS solution provision.

CIOs Priorities for 2014
T2RL conducted interviews with airline CIOs and executives between October and December 2013, T2RL consider the implications for the vendors.

Emirates PSS Decision Imminent
Emirates embarked on a process to evaluate the market with respect to the provision of PSS solutions. The management team are expected to make a decision in the coming weeks. This is critical decision for Emirates and a major signal to the market place in general.

Rising PSS Implementation Fees Will Slow Market Changes
T2RL’s latest research suggests that vendor charged PSS implementation costs have been rising steadily over the last 10 years. The effect will be to slow market share changes and extend terms with incumbents.

Expedia Powers Sabre's Offer
Expedia and Sabre have entered into an agreement where Travelocity becomes the ultimate affiliate as part of a process to improve financials prior to a transaction.

Amadeus Talks Turkish
The acquisition by Amadeus of a major product line from Turkish company Hitit marks a significant departure for both companies. And it may significantly influence the battle to supply PSS to Turkish Airlines.

NDC will benefit the GDS and PSS Providers
IATA has adopted a standard for its New Distribution Capacity. This will allow airlines to market their services as effectively in indirect channels as they already do in their web sites and call centres. Always assuming that ill-informed controversy whipped up by the likes of the Business Travel Consortium is not allowed to derail a much needed modernisation.

Sabre's Quiet Success
The first major PSS migration of the year has taken place and it went off apparently without a hitch. Etihad is now a user of the SabreSonic suite and the market for airline passenger services systems has been demonstrated to be a rational and competitive one.

Kayak Cashes Out
With Google not yet established in airline search the owners of Kayak have exploited an opportunity to maximise their returns.

Thomas, Son of Amadeus
The North American carriers will be hard pressed to find a commercial proposition from the market that meets their current low costs and rates for PSS. To sustain their economics they will have to look at new models and agreements. One of these models might resemble Air France, Lufthansa, SAS and Iberia's creation of Amadeus in 1986. Open Source may be another model for consideration. Whatever route they choose the prize might be more than maintaining PSS economics.

Amadeus Extends its Reach
Amadeus has introduced another new product line. Revenue Accounts is a natural extension to its existing PSS and Revenue Management applications. It is also the second most valuable application in most airlines' portfolio and as such offers long-term revenue opportunities.

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