• Amadeus Home
  • Newsroom
  • Archive
  • Amadeus launches new distribution solution to revolutionise the low cost carrier market

Amadeus launches new distribution solution to revolutionise the low cost carrier market

Amadeus has rolled out a new technology solution which will revolutionise the low cost airline market by providing comprehensive access for the first time, to sales through travel agents and corporate customers.

Amadeus launches new distribution solution to revolutionise the low cost carrier market

Business Release

25 Apr 2006
LCCs can see 30% increase in yield and 20% increase in booking

"..a real understanding of the LCC business model.." says leading Scandinavian LCC, Sterling Airlines

Madrid, Spain, 25 April 2006: Amadeus, a global leader in technology and distribution solutions for the travel and tourism industry, has rolled out a new technology solution which will revolutionise the low cost airline market by providing comprehensive access for the first time, to sales through travel agents and corporate customers. Amadeus Ticketless Access is a breakthrough which enables up-to-the-minute fare and flight information from ticketless carriers to be displayed alongside those of full service airlines through the Global Distribution System (GDS). Equally important, it eliminates an estimated 3-5 EURO per booking in added technology costs, currently faced by LCCs that distribute through this channel.

Sterling, a leading Scandinavian LCC, is successfully pioneering Amadeus Ticketless Access. Michael Hansen, Vice President, Business Development & IT at Sterling, said: "The low cost carrier market in Europe is increasingly competitive and it is important that we continue to look at ways to increase revenues and support growth. We have often been outspoken critics of the costs associated with traditional GDSs in the past but Amadeus Ticketless Access is a truly pioneering tool to help us extend our reach and distribution. It is a genuine change in the industry. Amadeus has shown a real understanding of the low cost carrier business model and a commitment to deliver on its vision of a next generation GDS."

Amadeus Ticketless Access provides Sterling with access to the GDS channel without significant expenditure as the airline does not place inventory into the GDS and all transactions are carried out using Sterling's existing system. The benefit to Sterling is two-fold: a reduced distribution cost and increased reach across Europe whilst retaining full control of all content.

Hansen continued: "We expect the new solution to deliver significantly increased bookings from business travellers and inbound traffic which will have a major impact on our commercial objectives."

Frédéric Spagnou, Vice President Airline Business Group, Amadeus, said: "Whilst they continue to do things differently and control costs, LCCs need to generate new revenues if they are to stay ahead in a maturing market. In Europe alone the number of LCCs has increased from five in 2000 to 65 in 2006. By removing the added technology cost associated with distribution via the GDS, we have truly opened up sales through travel agencies, balancing the dependency of low cost airlines on the internet channel. LCCs tell us this will enable them to realise approximately 30% increase in yield, through access to higher value corporate customers and also a 20% increase in the volume of bookings."

Amadeus developed Ticketless Access in response to market demand from LCCs, travel agents and travellers, especially corporates who wish to have a fuller choice of flights through a single channel. The solution is the only one available to LCCs that uses standard Extensible Markup Language (XML) messages and integrates airline content with the core back office GDS.

Ticketless Access is part of Amadeus' commitments to deliver technology solutions that meet the needs of all airlines and to make the price of distribution equal to the perceived value it delivers to airlines.


Notes to the editors

Sterling
Sterling is Europe's fourth-largest low-cost airline, and the largest in Scandinavia, operating both charter and scheduled flights to over 40 destinations across Europe.

In 2004, Sterling carried 1.825 million passengers and had a turnover of DKK 1.613 billion. In September 2005, Sterling merged with Maersk Air, giving the company a total staff of more than 1,600 employees and a fleet of 30 aircraft of the types Boeing 737, 800, 700 and 500. Sterling has its headquarters in Copenha-gen and is owned by the Icelandic investment company FL Group.

For more information, please visitwww.sterling.dk.

Contact details
Niels Brix
VP - HR, Communications & Legal Affairs
Sterling Airlines A/S
tel: +45 32314440
fax: +45 32314492
e-mail: niels.brix@sterling.dk


Amadeus
A world-leading technology and distribution solutions provider, Amadeus delivers unparalleled expertise to the travel and tourism industry, including leading-edge solutions that cover airlines' unique business needs, independent of their size, business model or market reach.

Amadeus' pioneering new-generation Customer Management Solution (CMS) portfolio, Amadeus Altéa CMS, serves both network and regional carriers. The Altéa portfolio, based on a pioneering community platform concept, enables improved operational efficiency and increases revenue. The portfolio consists of the Altéa Reservation, Altéa Inventory and Altéa Departure Control solutions.

Low Cost Carriers have alternative Customer Management Solutions - Pioneer CMS and Results CMS by Amadeus - based on adaptive technology that provides robust options that easily adjust to their evolving operational requirements.

Further complimenting these integrated IT solutions is the Amadeus e-Travel Airline Suite that includes the Amadeus e-Retail engine, which powers more than 120 websites of over 60 airlines.

Amadeus also offers a range of IT solutions, including: revenue integrity and automatic ticket reissue tools, in addition to full e-ticket interlining and ground-handling management technology services.

For further information, pleaseclick here.