Southwest breaks with past, signs 10-year GDS deal with Galileo

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Southwest breaks with past, signs 10-year GDS deal with GalileoThursday May 17, 2007   Southwest Airlines signed a 10-year distribution agreement with Galileo, the second-largest GDS in the US, and will begin participating in the system later this year after technical work is completed.
  The deal does not include the carrier's Web-only fares. Since 1995, SWA has participated only in Sabre, the largest GDS in the US market, at the Basic Booking Request level. But more attractive GDS economics and a need to boost revenue as fuel costs soar induced it to reconsider its stance, as GDS participation offers access to the higher-yield corporate travel market. JetBlue Airways came to a similar conclusion last year (ATWOnline, Oct. 31, 2006) and has said its GDS revenues are noticeably higher.
  The new SWA content apparently will come at a cost to Galileo subscribers. "Details of the cost to agents for this Southwest content will be available shortly," the GDS said.
  In response, Sabre said the Southwest-Galileo deal signifies "the ongoing recognition of the importance of the travel agency channel and their corporate customers" and "confirms the value and importance of the GDS channel for all size carriers."
  
  by Michele McDonald

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