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Air Berlin will not migrate to Sabre
Sabre have filed a document to indicate they will be recording a charge of between USD 80 million and 100 million less sums due from Air Berlin in their accounts. Generally PSS providers capitalise the costs associated with implementation and set up of new customers and then amortise this amount over the term of the agreement according to their accepted accounting principles. The amount Sabre have quoted seems very high for a carrier the size of Air Berlin. T2RL conclude that there must have been considerable customisation of the solution combined with implementation services delivered over an unusually long period of time for the amount to be so high. It is also clear from the filing that there is a termination fee in the PSS contract and that Sabre expect to get this fee. Given Air Berlin are not moving to Sabre it is very likely that they remain on Amadeus and other custom developed solutions for the forseeable future.
Published: 25/05/2017




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