Sabre signs four year deal with Lufthansa

06 May 2009 at 17:47 — by Stanley Slaughter in Air Travel, Travel Management | NEWS ITEM

Agreement exempts GDS's agents from surcharges

Sabre today (May 6) signed a four year, full content deal with Lufthansa.

The agreement extends the deal signed by the two parties last year which is due to expire at the end of June.

The new deal, which will come into force on July 1, will continue to exempt the GDS's agents in Germany, Austria and Switzerland from surcharges imposed under the airline's controversial Preferred Fares Programme (PFP).

Greg Webb, chief marketing officer for Sabre Travel Network, said: "Our deal gives agencies and corporations something they really need in this current economic climate - guaranteed certainty and continued long-term access to full content from Lufthansa via the efficient GDS channel."

Josef Bogdanski, Lufthansa's senior vp sales Germany and global key accounting, said: "Our announcement with Sabre gives agencies efficient access to all of our fares and inventory while balancing our needs in today's current economy.

"This deal proves value in our multi-channel strategy and the partnership with Sabre, and its agency and corporate customers around the world."

Under the PFP, Lufthansa imposes a €4.90 fees for certain fares booked through GDSs in Germany, Austria and Switzerland.

Travelport GDS has signed an agreement with Lufthansa which exempts agents using its two GDSs, Galileo and Worldspan, from any surcharge.

But Amadeus, the dominant GDS in the three countries and in which Lufthansa has an 11.5% stake, has failed to reach an agreement with the airline.

Holger Taubmann, the company's general manager in Germany, said that it has lost 10% of its flight bookings since it stopped absorbing the surcharge at the end of January in Germany and Austria.

He said that if the trend continued, its share of the market would drop form 83% in January to 20% by the end of the year.

Lufthansa said talks with Amadeus were still continuing and it was still hopeful of reaching an agreement.

 www.sabre.com   www.lufthansa.com   www.amadeus.com

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