6-Airline-It.Pdf

Total Page:16

File Type:pdf, Size:1020Kb

6-Airline-It.Pdf 6 Airline IT Amadeus Global Report 2017 A business, financial and sustainability overview 42 / 6. Airline IT Amadeus Global Report 2017 A journey of innovation Julia Sattel Senior Vice President, Airlines, Amadeus The airline industry builds economies, broadens cultures and creates connections between societies. It helps global and local businesses boom and expand. It connects people, drawing them closer together than ever before. Our vocation is to make that connection even stronger and simpler. Technology has always been critical to developing global travel. We have developed ours in partnership with airlines and are committed to supporting them in doing what they do best: fly and serve travelers around the world. 6 Every year we help close to 200 airlines fly more than 1.6 billion passengers around the globe. Before they even get to the airport, our Airline IT people and our technology play a part – behind the scenes – in getting them there. Airlines aim to provide the traveler with an experience they Amadeus Global Report 2017 6. Airline IT / 43 By simplifying processes and managing the complexity of working with third parties across the travel industry and beyond, Amadeus supports airlines as they drive transformation and innovation throughout their businesses to shape the future of travel. We are together in this journey. Our solutions and services enable airlines to provide the passenger with a consistent, personalized experience throughout their journey. From inspiration, search and booking to ticketing, check-in and boarding. We help airlines of all types – whether full-service carriers, so-called hybrid or low-cost airlines to grow sales, optimize costs and efficiency, deliver great service and build brand and customer loyalty whatever their business model. We also offer airlines unique possibilities to collaborate with their alliance and codeshare with strategic partners to maximize sales through all channels. will remember throughout every stage of the journey, from inspiration, search and booking to pricing, ticketing, check-in and boarding. The challenge airlines face today G4-2 is how to evolve to fully embrace digital transformation, open technology, the cloud Passengers boarded* (figures in millions) and application programming interfaces, among others, to support their vision of the future … and we are excited to partner with them on this journey. We are always looking for ways to keep airlines at the forefront of the latest trends. We empower full-service, hybrid and low-cost airlines to deliver on their objectives (to grow revenue, optimize costs and efficiency, and build brand and customer loyalty) according to whatever strategy they choose to follow. Airlines have unique opportunities to collaborate with their airline alliance codeshare or other strategic partners to maximize all sales channels, directly and through our networks. In fact, we serve the largest portfolio of the world’s top airline alliances: Amadeus airline 1,657 solutions are used by 69% of Star Alliance members, 71% of Oneworld carriers and over half of the members of SkyTeam. 1,383 Together with the industry we have enjoyed 30 years of innovation, collaboration and better journeys. We continue to invest heavily in our people at regional centers 695 747 of excellence across the globe. Innovation is in our DNA; we are one of the biggest 616 investors in R&D in the travel and tourism sector. We are a company of firsts. The first searches to combine price and flight availability. The first departure control system based on open technology. The first to come up with a Passenger Name Record. 2013 2014 2015 2016 2017 And we will keep on speaking to experts in our industry, partnering and developing technology so we are the first to do something else for our customers next month or next year. * Passengers boarded, i.e. actual passengers boarded onto flights operated by airlines using at least the Amadeus Altéa Reservation and Inventory modules or Navitaire New Skies. 44 / 6. Airline IT Amadeus Global Report 2017 The core Amadeus Airline IT offering is based on two Targeting our customers' needs e-Retail complementary Passenger Service Systems (PSS).1 Web Services and APIs The PSS Amadeus Altéa Suite consists of three modules: Sales Channel Optimization Shopping & Direct Connect 1_ Reservation: enables our airline customers to manage retailing bookings, fares and ticketing through a single Passenger Service Systems interface and is compatible with distribution via direct Anytime and indirect channels, both online and offline. and disruption Merchandizing management 2_ Inventory: its functionality helps to create and Merchandizing & Ancillary Services manage schedules, seat capacity and associated personalization Fare Families fares on a flight-by-flight basis. This allows the Altéa Airline IT Customer Experience Management airline to monitor and control availability and New Skies reassign passengers in real time. Altéa Inventory Schedule Recovery portfolio also incorporates a seat-mapping functionality. Passenger Recovery 3_ Departure Control: covers many aspects of flight Revenue Management departure, including check-in, issuance of boarding Revenue Dynamic Pricing G4-4 passes, gate control, disruption management and optimization Cloud Availability other functions related to passenger flight boarding. Services Financial Suite In addition, Altéa Departure Control offers aircraft load control functionality, which enables airlines to evaluate and optimize fuel utilization. On the other hand, Our New Skies PSS offers solutions tailored to the needs of low-cost carriers, covering reservations, distribution, travel commerce, loyalty We work closely with our customers to understand key In addition, we regularly commission specific research revenue management, revenue accounting and industry trends and traveler demands and to get deep on important industry topics. The white paper data storage. insights into airline needs. For example, over the years Embracing Airline Digital Transformation: A Spotlight on Our pricing model for Airline IT solutions is primarily Amadeus has actively contributed to evolving IATA NDC. what Travellers Value, focused on how airlines need to based on a fee per each transaction processed, for better understand passenger needs and how to service We believe IATA NDC has now reached a level of maturity example per passenger boarded. By operating a them more appropriately. These combined insights that allows for its industrialization. Amadeus has the transaction-based model, our returns are linked to the are incorporated to our investment strategy and expertise and capabilities to do this, and it is our aim to operational volumes of airlines. portfolio, which are designed to address the following deploy NDC at industrial scale assuming the industry opportunities in the airline industry: follows the IATA NDC and its standard implementation to ensure efficiencies for all parties. In the short term, Amadeus will become Level 3 certified as aggregator in 1 Passenger Service System (PSS) is a series of mission-critical 2018. However, Amadeus’ ambition is to continue beyond solutions used by airlines. The PSS usually comprises a Reservation System, an Inventory System and a Departure Control System (DCS). NDC to deliver unique and advanced capabilities that will See “Environmental sustainability,” p. 98. benefit travel providers and sellers alike. See “Amadeus research and thought leadership papers,” p. 69. Amadeus Global Report 2017 6. Airline IT / 45 1. Articulating the right offer to the traveler Garuda According to our research, only 14% of travelers find it easy to compare airline offers based on attributes other than price, while 37% of travelers say that Garuda Indonesia proves that ancillary services and has one of the highest ancillary adoption rates in competitive price is the most important factor when customer satisfaction go hand in hand. Asia-Pacific. It has seen an increase in ancillary choosing an airline. Closely behind comes convenience revenue of +34% in four years. At the same time, Challenge of flight time and departure airport, which 31% say is its customer satisfaction rating is also on a steady the most important. In recent years, steep competition has led to rise at +0.8 points year-over-year in 2016. And the Our whitepaper A spotlight on Total Offer Optimization: a declining average ticket price. In Asia-Pacific proof is in the pudding: in 2017 Garuda Indonesia Fast-Forward to Customer-Centric Revenue Management the challenge lies in both the domestic and was named “The World’s Best Cabin Crew” for the highlights the evolution of revenue management in the international markets, and in full-service and third consecutive year, as well as “The World’s Most age of personalization, where the right price is offered to low-cost carrier segments. Ancillaries presented Loved Airline.” the right customer at the right time. an opportunity to grow the airline’s revenue, in line with its brand image. Sales of airline ancillary Ultimately, what travelers value will change depending services globally have skyrocketed over the past on the context of their trip. This provides an opportunity few years. As Indonesia’s flag carrier, Garuda is for airlines to present their offers seamlessly across all committed to putting passengers first, which is its channels, all touchpoints and all devices so that other core value and competitive differentiation. Garuda aspects of the product, apart from price, can help drive asked Amadeus
Recommended publications
  • Genesis Analytics 2016 Quantifying the Economic Contribution Of
    Quantifying the Economic Contribution of Emirates to South Africa A report prepared by Genesis Analytics June 2016 © Genesis Analytics 2016 Document Reference: Quantifying the Economic Contribution of Emirates to South Africa, Final Date: June 2016 Contact Information Genesis Analytics (Pty) Ltd Office 3, 50 Sixth Road Hyde Park, 2196, Johannesburg South Africa Tel: +27 (0) 11 994 7000 Fax: +27 (0) 11 994 7099 www.genesis-analytics.com Authors Ryan Short Mbongeni Ndlovu Tshediso Matake Dirk van Seventer With thanks to Annabelle Ong and Chris Cuttle Contact Person Ryan Short [email protected] +27 (0) 11 994 7000 ii Table of Contents EXECUTIVE SUMMARY .............................................................................. VI 1. INTRODUCTION ..................................................................................... 1 1.1. Background and purpose ........................................................................ 1 1.2. Report structure ...................................................................................... 2 2. ABOUT EMIRATES ................................................................................. 3 3. OVERVIEW OF EMIRATES GROUP IN SOUTH AFRICA ..................... 4 4. A FRAMEWORK FOR MEASURING CONTRIBUTION ......................... 6 5. ENABLED CONTRIBUTION ................................................................... 9 5.1. The economic benefits of air connectivity ............................................... 9 5.2. The connectivity benefits of Emirates .....................................................
    [Show full text]
  • IATA CLEARING HOUSE PAGE 1 of 21 2021-09-08 14:22 EST Member List Report
    IATA CLEARING HOUSE PAGE 1 OF 21 2021-09-08 14:22 EST Member List Report AGREEMENT : Standard PERIOD: P01 September 2021 MEMBER CODE MEMBER NAME ZONE STATUS CATEGORY XB-B72 "INTERAVIA" LIMITED LIABILITY COMPANY B Live Associate Member FV-195 "ROSSIYA AIRLINES" JSC D Live IATA Airline 2I-681 21 AIR LLC C Live ACH XD-A39 617436 BC LTD DBA FREIGHTLINK EXPRESS C Live ACH 4O-837 ABC AEROLINEAS S.A. DE C.V. B Suspended Non-IATA Airline M3-549 ABSA - AEROLINHAS BRASILEIRAS S.A. C Live ACH XB-B11 ACCELYA AMERICA B Live Associate Member XB-B81 ACCELYA FRANCE S.A.S D Live Associate Member XB-B05 ACCELYA MIDDLE EAST FZE B Live Associate Member XB-B40 ACCELYA SOLUTIONS AMERICAS INC B Live Associate Member XB-B52 ACCELYA SOLUTIONS INDIA LTD. D Live Associate Member XB-B28 ACCELYA SOLUTIONS UK LIMITED A Live Associate Member XB-B70 ACCELYA UK LIMITED A Live Associate Member XB-B86 ACCELYA WORLD, S.L.U D Live Associate Member 9B-450 ACCESRAIL AND PARTNER RAILWAYS D Live Associate Member XB-280 ACCOUNTING CENTRE OF CHINA AVIATION B Live Associate Member XB-M30 ACNA D Live Associate Member XB-B31 ADB SAFEGATE AIRPORT SYSTEMS UK LTD. A Live Associate Member JP-165 ADRIA AIRWAYS D.O.O. D Suspended Non-IATA Airline A3-390 AEGEAN AIRLINES S.A. D Live IATA Airline KH-687 AEKO KULA LLC C Live ACH EI-053 AER LINGUS LIMITED B Live IATA Airline XB-B74 AERCAP HOLDINGS NV B Live Associate Member 7T-144 AERO EXPRESS DEL ECUADOR - TRANS AM B Live Non-IATA Airline XB-B13 AERO INDUSTRIAL SALES COMPANY B Live Associate Member P5-845 AERO REPUBLICA S.A.
    [Show full text]
  • Voluntary Carbon Offsetting 44 1-3%
    FACT SHEET #11 / NOVEMBER 2020 VOLUNTARY CARBON OFFSETTING A number of airlines already offer voluntary carbon offsetting for passengers, how do they work? Each flight produces carbon dioxide (CO2) emissions and whilst there are a lot of things being done by airlines to reduce the fuel use and CO2 emissions, often passengers would like to know how they can help lower the CO2 footprint of their travel. Voluntary carbon offsetting is one option available to passengers, either through an airline programme directly, or a third-party offset provider. What are offsets? 44 A large number of corporate travellers The name ‘offset’ can cover a variety of sources of CO2 reduction. It is a way to compensate for CO2 being produced airlines offer and individual in one area, by helping to fund a project which reduces CO2 in voluntary carbon passengers will another area. offsetting offset through third- programmes to party providers: we For example, if a passenger’s flight produces 2 tonnes of passengers. have no visibility CO2, they can choose to help fund a project which provides renewable energy to replace 2 tonnes of fossil fuel-related Half of the world’s 20 on the uptake of CO2 production. largest airlines offer offsets through these offsetting. sources. This is an offset, or a ‘carbon credit’. Most credits / offsets are in units of one tonne of CO2 and they can be generated by a range of different programmes around the world, in renewable energy, forestry and eventually they may be available in carbon capture, using technology to literally draw CO2 out of the 1-3% atmosphere.
    [Show full text]
  • Your Tool User Guide
    1 Air Canada for Business Air Canada for Business User Guide User Guide YOUR TOOL USER GUIDE AIR CANADA FOR BUSINESS MANAGEMENT TOOL USER MANUAL 2020-2021 © 2020-2021 AIR CANADA 2 Air Canada for Business User Guide USER GUIDE TABLE OF CONTENTS WELCOME 3 Program benefi ts 3 Program user roles 4 Main menu overview 5 Flow overview 6 1. ACCOUNT 7 Set up your account and settings 2. DIVISION 11 Organize your account into multiple Divisions 3. TRAVELLERS 15 Create and setup your Travellers’ profi les 4. REPORTS 22 Run your reports 5. BOOKING 24 Book fl ight and car © 2020-2021 AIR CANADA 3 Air Canada for Business Air Canada for Business User Guide User Guide WELCOME TO THE AIR CANADA FOR BUSINESS PROGRAM PROGRAM BENEFITS Members can enjoy exclusive offers from day one, which can be shared throughout the company and are in addition to the Aeroplan® Miles. Discounts on Air Canada and partner airlines fl ights* Complimentary and discounted services on Preferred seat selection and Air Canada Maple Leaf™ Lounge access; Complimentary eUpgrade Credits Exclusive promotional offers from day one Car rental Corporate rates in partnership with Avis and Budget; Exclusive online tool to book and manage business travel expenses Dedicated support via email and phone line. Visit the Rewards section online to view the full details on how to earn and track your benefi ts as your company gets started on the program. * Partner airlines include: Lufthansa, Austrian Airlines, Brussels Airlines and SWISS, United Airlines, United Express, All Nippon Airways, Air New Zealand and Avianca and Avianca Brazil.
    [Show full text]
  • Prof. Paul Stephen Dempsey
    AIRLINE ALLIANCES by Paul Stephen Dempsey Director, Institute of Air & Space Law McGill University Copyright © 2008 by Paul Stephen Dempsey Before Alliances, there was Pan American World Airways . and Trans World Airlines. Before the mega- Alliances, there was interlining, facilitated by IATA Like dogs marking territory, airlines around the world are sniffing each other's tail fins looking for partners." Daniel Riordan “The hardest thing in working on an alliance is to coordinate the activities of people who have different instincts and a different language, and maybe worship slightly different travel gods, to get them to work together in a culture that allows them to respect each other’s habits and convictions, and yet work productively together in an environment in which you can’t specify everything in advance.” Michael E. Levine “Beware a pact with the devil.” Martin Shugrue Airline Motivations For Alliances • the desire to achieve greater economies of scale, scope, and density; • the desire to reduce costs by consolidating redundant operations; • the need to improve revenue by reducing the level of competition wherever possible as markets are liberalized; and • the desire to skirt around the nationality rules which prohibit multinational ownership and cabotage. Intercarrier Agreements · Ticketing-and-Baggage Agreements · Joint-Fare Agreements · Reciprocal Airport Agreements · Blocked Space Relationships · Computer Reservations Systems Joint Ventures · Joint Sales Offices and Telephone Centers · E-Commerce Joint Ventures · Frequent Flyer Program Alliances · Pooling Traffic & Revenue · Code-Sharing Code Sharing The term "code" refers to the identifier used in flight schedule, generally the 2-character IATA carrier designator code and flight number. Thus, XX123, flight 123 operated by the airline XX, might also be sold by airline YY as YY456 and by ZZ as ZZ9876.
    [Show full text]
  • DHL and Leipzig Now Lead ATM Stats 3 European Airline Operations in April According to Eurocontrol
    Issue 56 Monday 20 April 2020 www.anker-report.com Contents C-19 wipes out 95% of April air traffic; 1 C-19 wipes out 95% of April air traffic; DHL and Leipzig now lead movements statistics in Europe. DHL and Leipzig now lead ATM stats 3 European airline operations in April according to Eurocontrol. The coronavirus pandemic has managed in the space of a According to the airline’s website, Avinor has temporarily month to reduce European air passenger travel from roughly its closed nine Norwegian airports to commercial traffic and 4 Alitalia rescued (yet again) by Italian normal level (at the beginning of March) to being virtually non- Widerøe has identified alternatives for all of them, with bus government; most international existent (at the end of March). Aircraft movement figures from transport provided to get the passengers to their required routes from Rome face intense Eurocontrol show the rapid decrease in operations during the destination. competition; dominant at Milan LIN. month. By the end of the month, flights were down around Ryanair still connecting Ireland and the UK 5 Round-up of over 300 new routes 90%, but many of those still operating were either pure cargo flights (from the likes of DHL and FedEx), or all-cargo flights Ryanair’s current operating network comprises 13 routes from from over 60 airlines that were being operated by scheduled airlines. Ireland, eight of which are to the UK (from Dublin to supposed to have launched during Birmingham, Bristol, Edinburgh, Glasgow, London LGW, London the last five weeks involving Leipzig/Halle is now Europe’s busiest airport STN and Manchester as well as Cork to London STN).
    [Show full text]
  • Financial Statements Bulletin
    Finnair Group financial statement bulletin 1 January–31 December 2016 Comparable full-year operating result more than doubled year on year; positive in Q4 October–December 2016 Revenue increased by 0.4% year-on-year to 569.9 million euros (567.7)*. Excluding the sold travel agencies, revenue growth was 1.2% Available seat kilometres (ASK) grew by 3.5%. Comparable operating result was 1.6 million euros (0.8). Operating result was 18.2 million euros (85.0). The items affecting comparability were mainly related to foreign exchange gains. Comparable EBITDAR was 59.4 million euros (59.5). Net cash flow from operating activities totalled 30.5 million euros (7.1), and net cash flow from investing activities amounted to -264.7 million euros (-7.8).** Unit revenue (RASK) decreased by 3.0% year-on-year.*** Unit cost (CASK) decreased by 3.2% and unit cost at constant currency excluding fuel decreased by 1.6% year-on-year. Ancillary and retail revenue per passenger grew by 10.3% year-on-year to 12.2 euros. Earnings per share were 0.08 euros (0.44). January–December 2016 Revenue increased by 2.8% year-on-year to 2,316.8 million euros (2,254.5) with 6.5% ASK growth. Excluding the sold travel agencies, revenue growth was 3.2%. Comparable operating result was 55.2 million euros (23.7). Operating result was 116.2 million euros (121.7) including the sales gain on one Airbus A350 widebody aircraft (two were sold and leased back in 2015). Comparable EBITDAR was 270.4 million euros (231.2).
    [Show full text]
  • Global Aviation Monitor (GAM)
    Institute of Air Transport and Airport Research Global Aviation Monitor (GAM) Analysis and Short Term Outlook of Global, European and German Air Transport June 2018 Institute of Air Transport and Global Aviation Monitor (GAM) Airport Research June 2018 Main Results of Global Air Transport Supply Analysis and Outlook Background: Covers about 3,500 airports worldwide Covers about 850 airlines worldwide Air transport supply of 2017: More than 37 M flights (non-stop) worldwide, new record value Busiest month so far in 2018: June with 3.3 M flights Air traffic increases slowly since April 2013 Forecasting methodology: Time series analysis The mean absolute forecast error over a twelve month period typically lies in a range of between 0.5 and 1.5 percentage points for a forecast horizon of 1, 2 & 3 months. Analysis: July 2017 – June 2018 Global History: About 5 % growth per year before financial crisis 2008/2009, then a rapid decline of more than 9 % between February 2008 and February 2009, followed by a rather slow recovery until 2011 (7.2 % increase between February 2009 and February 2011). Since 2011, the number of flights grows only very slowly; stagnation between September 2012 and March 2013, small growth rates since April 2013; growth rates of around 3 % since March 2015, 3.0 %- 6.3 % between December 2015 and June 2018 March 2018: 3.3 M flights supplied (+5.1 %) Airports: Heterogeneous development of no. of flights offered; strong growth e.g. at Jakarta and Frankfurt (10 % and more) Airlines: Heterogeneous development of no. of flights offered; strong growth e.g.
    [Show full text]
  • Press Release
    PRESS RELEASE East Meadow, March 19, 2018 Lufthansa begins biometric boarding at LAX, paving the way for nationwide usage at airports − Biometric technologies simplify, de-stress and significantly speed up airplane boarding − During the initial trial, Lufthansa boarded an A380 in about 20 minutes − Following Lufthansa’s successful LAX trial, the Airline will introduce biometrics boarding at other U.S. airports nationwide Lufthansa Group, as part of its ongoing efforts to digitalize the travel world, has launched hassle- free, one-step biometric boarding utilizing facial recognition. This innovative pilot, enabled through a collaboration with Lufthansa Group’s longstanding IT partner, Amadeus, as well as U.S. Customs and Border Protection (CBP), Los Angeles World Airports Authority (LAWA), and Vision Box, is now available at Los Angeles International Airport (LAX). During initial trials, Lufthansa received very positive feedback from guests and boarded approximately 350 passengers onto an A380 in about 20 minutes. Here is how it works: • Self-boarding gates with sophisticated facial recognition cameras capture passengers’ facial images as they approach the device • This image is securely sent to the CBP database for real-time matching and verification • After a successful, instantaneous match within a few seconds, the system recognizes the passenger as “boarded” • The passenger no longer needs to show a boarding pass or passport at the gate “The increasing need for airlines, airports and authorities to offer faster and more convenient processes for guests to move through the airport creates a unique opportunity for the use of biometrics,” said Bjoern Becker, Senior Director, Product Management Ground and Digital Services for Lufthansa.
    [Show full text]
  • Before the Department of Transportation Office of the Secretary Washington, Dc
    BEFORE THE DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, DC ) Application of ) ) EW DISCOVER GmbH ) ) Docket DOT-OST-2021-0081 for Blanket Statements of Authorization ) Under 14 C.F.R. Part 212 ) (Codesharing with Lufthansa, Austrian Airlines, ) Brussels Airlines, and ) Swiss International Air Lines) ) ) MOTION FOR LEAVE TO FILE AND REPLY OF EW DISCOVER GmbH Communications with respect to this document should be addressed to: Arthur J. Molins General Counsel, The Americas The Lufthansa Group 1400 RXR Plaza West Tower Uniondale, NY 11556 (516) 296-9234 (phone) [email protected] August 4, 2021 BEFORE THE DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, DC ) Application of ) ) EW DISCOVER GmbH ) ) Docket DOT-OST-2021-0081 for Blanket Statements of Authorization ) Under 14 C.F.R. Part 212 ) (Codesharing with Lufthansa, Austrian Airlines, ) Brussels Airlines, and ) and Swiss International Air Lines) ) ) DATED: August 4, 2021 MOTION FOR LEAVE TO FILE AND REPLY OF EW DISCOVER GmbH EW Discover GmbH (“EW Discover”) submits this reply to “Comments” filed by Condor Flugdienst GmbH (“Condor”) regarding the above-captioned application.1 Condor is asking the Department to intervene in a competitive dispute between two German carriers involving issues that are currently under review by the German competition authority. Condor specifically demands that the Department preempt the German competition authority’s review by initiating its own investigation and taking the extraordinary and unprecedented action of requiring Lufthansa (not EW Discover, the applicant) to interline with Condor. EW Discover asks that the Department disregard Condor’s spurious intervention in this docket and promptly approve EW Discover’s 1 Comments of Condor Flugdienst GmbH, July 26, 2021 (Docket DOT-OST-2021-0081) (“Condor Comments”).
    [Show full text]
  • Download the Paper Airline Alliances And
    Citation: 45 Hous. L. Rev. 293 2008-2009 Provided by: William A. Wise Law Library Content downloaded/printed from HeinOnline Mon Jul 17 10:43:42 2017 -- Your use of this HeinOnline PDF indicates your acceptance of HeinOnline's Terms and Conditions of the license agreement available at http://heinonline.org/HOL/License -- The search text of this PDF is generated from uncorrected OCR text. -- To obtain permission to use this article beyond the scope of your HeinOnline license, please use: Copyright Information ARTICLE AIRLINE ALLIANCES AND SYSTEMS COMPETITION James Reitzes & DianaMoss* TABLE OF CONTENTS I. INTRODU CTION ..................................................................... 294 II. AIRLINE ALLIANCES AND SYSTEMS COMPETITION ................ 296 A. Alliances as System s ..................................................... 296 B. Systems and Competition.............................................. 299 C. Antitrust Immunity and Airline Alliances ................... 303 III. COMPETITIVE ISSUES SURROUNDING ALLIANCES ................. 305 A. Elimination of Horizontal Competition ........................ 306 1. Concerns Over Immunity ....................................... 306 2. Alliance Expansion and Implicationsfor InterallianceCompetition ...................................... 307 B. Vertical Issues-Discriminationand Foreclosure by Immunized Alliances .................................................... 309 * James Reitzes is a Principal of The Brattle Group (Washington, D.C.), and Diana Moss is Vice President and Senior Fellow
    [Show full text]
  • All Nippon Airways and Intercontinental Hotels Group ANNOUNCE JOINT VENTURE to CREATE JAPAN’S LEADING HOTEL GROUP
    Japan National Tourist Organization Contact: Marian Goldberg www.jnto.go.jp/ & www.japantravelinfo.com [email protected], 212-757-5641 x16 One Rockefeller Plaza, Suite 1250, New York, NY 10020 For Immediate Release All Nippon Airways and InterContinental Hotels Group ANNOUNCE JOINT VENTURE TO CREATE JAPAN’S LEADING HOTEL GROUP TOKYO, Japan, November 23, 2006 – ANA (All Nippon Airways) and InterContinental Hotels Group (IHG) signed a hotel operating joint venture to create what could be the biggest hotel operator in Japan, the world’s second largest hotel market in terms of number of rooms. The joint venture – to be named IHG ANA Hotels Group Japan – will officially commence on December 1, 2006. Britain’s IHG, which said it will invest $15 million for a majority stake in the joint venture, was selected as ANA’s partner after a highly competitive process. The strength of IHG’s family of brands, robust growth pipeline, international outlook and established operating systems made it the preferred partner for ANA, while ANA’s reputation for high quality standards and service made it an attractive partner for IHG. Both companies share corporate values and strategic objectives. ANA will sign new management contracts with IHG ANA Hotels Group Japan for its 13 owned and leased hotels (4,943 rooms). These hotels will, gradually over an 18 month period beginning in April 2007, be re-branded to one of the three co-brands created for Japan – ANA- InterContinental, ANA-Crowne Plaza and ANA-Holiday Inn. The flagship ANA Hotel Tokyo will be the first to be co-branded on April 1, 2007 as the ANA-InterContinental Tokyo.
    [Show full text]