Southwest picks Amadeus’ Altéa reservations for its domestic operations

Southwest Airlines (Dallas) and Amadeus IT Group announced today that they have entered into a joint contract for Amadeus’ Altéa reservations solution that will support the carrier’s domestic service. Amadeus’ Altéa reservations solution currently supports the Company’s international service, and Southwest has long indicated a desire to operate just one reservation system, operating multiple systems following the acquisition of AirTran Airways (Orlando and Dallas) and the launch of international service on Southwest. After months of due diligence, the airline selected Amadeus’ Altéa solution based on a successful international launch and future capabilities.

Over the next few years, Southwest and Amadeus will partner to move to a single reservation system. Until then, the airline will continue with two reservation platforms after the sunset of the AirTran brand in December 2014. Amadeus is the leading IT provider for the travel and tourism industry with a unique portfolio of new generation solutions and the largest customer base for airline passenger service systems.

After two years of work, Southwest began selling international itineraries in January 2014 using Amadeus’ Altéa reservation solution. The carrier will begin flying those itineraries on July 1, 2014.

Southwest is Amadeus’ largest U.S. airline IT partner in terms of domestic passengers boarded annually. Amadeus has more than 100 airlines on their reservation system—mostly based in Europe, Asia, and Latin America. Once implemented, Southwest will be Amadeus’ largest airline IT partner worldwide in terms of passengers boarded.

Meanwhile Sabre reacted to announcement with this statement:

Sabre Corporation reported that it was notified earlier today by Southwest Airlines of its decision to end the competitive bid process for its future reservations system. Sabre was further notified that the contract has been awarded to a competitor.

Sabre remains under contract to be compensated through December 31, 2016 for continuing to provide reservations services for all domestic flights.

In 2013, Southwest Airlines’ reservations system contributed approximately one percent of total Sabre revenues, and three percent of Adjusted EBITDA.

Sabre’s leading SabreSonic CSS reservation solution is a market leader with strong market momentum. The robust and flexible solution was recently selected by the combined American Airlines and U.S. Airways, the world’s largest airline.

Sabre’s broad portfolio of airline solutions continues to provide opportunity for the Company to work with Southwest going forward through its currently installed solutions, as well as future opportunities.

Copyright Photo: Jay Selman/AirlinersGallery.com. Boeing 737-7H4 N219WN (msn 32490) arrives at the runway threshold at Las Vegas’ McCarran International Airport (LAS).

Southwest Airlines: AG Slide Show