It looks as if the EU is going to slide GDS deregulation in along with 1,400 pieces of legislation being processed as one, all without debate. This means that total deregulation will also end mandatory participation; any airline that owns a stake in a GDS must offer it’s content and fares to the other GDS’ on the same terms.
One of the reasons regulation happened in the first place was that the GDS were owned in large part by airlines; airlines that could bias availability displays to favor the owning airline and its partners. In a totally deregulated environment, the part owners of Amadeus (Air France, Lufthansa, and Iberia) could usher in monopoly positions in each carrier’s home country.
I suppose that could happen but when you think about it, wouldn’t the three carriers reap greater benefit by having their content and fares in as many outlets as possible? The answer is of course.
The real issue is that the airlines want to see lower costs for distribution of their product. And it will continue to be an issue until their costs approach $0.00.
Link courtesy of Travel and Hospitality Industry Digest – free registration required.