Newsstand - U.S. carriers to share reservations system

New York, NY, Apr. 27 (UPI) -- Seven big U.S. airlines will share a common reservation system to save millions in global distribution system fees.

http://washingtontimes.com/upi-breaking/20050427-094708-2146r.htm

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CHICAGO, April 27 /PRNewswire/ -- G2 SwitchWorks Corp. today announced
that the company has signed first-of-its-kind commitments with seven U.S.
airlines, validating G2 as a primary source for low cost travel distribution
solutions for the industry. Five of these airlines further demonstrated their
commitment to G2's future by pre-paying distribution fees for millions of
tickets and have received the opportunity to obtain a minority equity stake in
the company. G2 is focused on taking costs out of the distribution process
for airlines as well as providing cost savings and automation to travel
sellers.
G2 has signed long term commitments with American Airlines, America West
Airlines, Continental Airlines, Delta Air Lines, Northwest Airlines, United
Airlines and US Airways that designate G2 as a provider of choice for
alternative-GDS distribution services between them and key agency clients.
These airlines have agreed to distribute their inventory through G2's
TRUEconnect(TM) network, available to third-party travel sellers, which offers
as much as an 81% reduction in GDS fees, based on the distribution costs that
major U.S. airlines are charged on an average round-trip reservation.
In addition, American Airlines, America West Airlines, Continental
Airlines, Delta Air Lines and Northwest Airlines have individually agreed to
pre-pay distribution fees, totaling up to eight million tickets, as a sign of
their commitment to G2 for lowering their total cost of distributing tickets.
In exchange for this commitment, each airline will receive a discount on
transaction fees and the opportunity to acquire a minority stake in G2,
joining Norwest Venture Partners (NVP) and Texas Pacific Group's TPG Ventures, which recently increased their investments in G2.
"Seven of the country's largest carriers opted to make G2 SwitchWorks a
leading provider for alternative GDS distribution services even when other
providers exist in the industry," said Alex Zoghlin, G2 Founder and CEO. "In
addition to recognizing the benefits of our technology in lowering the total
cost of distribution for airlines, agencies, and ultimately the traveler,
these carriers recognize the future of travel distribution and want to
participate in the value created by G2."
G2's unique technology provides travel sellers and the corporate travel
community with first-ever capabilities that eliminate their dependence on a
single distribution provider and allow them to book travel through multiple,
integrated distribution channels at the agency's designation.
"American Airlines is pleased to be partnering with G2 in our efforts to
lower distribution expenses," Dan Garton, executive vice president of
Marketing, American Airlines. "G2 brings a unique solution and welcome
competition to the market that allows American to distribute our product
efficiently at significantly lower costs. Today's announcement underscores
our commitment to G2 and our support of lower-cost distribution alternatives."
"As a low-cost carrier, reducing our distribution cost, one of our largest
controllable expenses, is an imperative," said Scott Kirby, executive vice
president of Sales and Marketing, America West Airlines. "G2 SwitchWorks
complements this strategy by delivering innovative distribution technology at
a much lower cost than traditional outlets."
"With G2's TRUEconnect, we now have a cost effective means of distributing our fares and inventory to travel sellers," said Jim Compton, executive vice president of Marketing, Continental Airlines. "The dramatic reduction in expense of connecting through G2 gives us the ability to share more of the products and services that agencies and their customers' value."
"As Delta transforms to become more customer focused, our partnership with G2 and their new emerging technology solution provides us with a cost
effective means of distribution," said Paul Matsen, chief marketing officer,
Delta Air Lines. "We are pleased with G2's approach to developing automated
solutions improving the efficiency of our travel agency partners. G2's
flexible platform provides an alternative distribution solution for travel
agencies and consumers in distributing Delta's product."
"Northwest's agreement with G2 is another important step in our ongoing
efforts to lower the cost of selling tickets through travel distributors,"
said Al Lenza, vice president of distribution and e-commerce at Northwest
Airlines. "G2 will help us realize the potential of new technologies to
better meet the needs of travel agents, and do so at a lower cost to
Northwest."
"There are a few alternative distribution providers in the marketplace
today. While they all aim to help airlines lower their distribution costs,
only G2 is equally focused on increasing efficiencies and lowering costs for
travel sellers," added Zoghlin.

The American Society of Travel Agents (ASTA) yesterday issued letters to the U.S. Departments of Justice and Transportation, asking that they look into the circumstances leading to last week's announcement by G2 Switchworks (G2) that it has signed long-term agreements with seven major airlines that "designate G2 as a provider of choice for alternative-GDS distribution services between them and key agency clients." G2 is the latest entrant in the travel distribution market.

http://travelvideo.tv/news/more.php?id=5135_0_1_0_M

http://www.dfw.com/mld/dfw/business/11595699.htm

Every business has problems, but Sabre Holdings faces a unique threat.

CHICAGO, May 9 /PRNewswire/ -- In response to recent unfounded statements
about G2 SwitchWorks Corp. by the American Society of Travel Agents (ASTA),
Alex Zoghlin, G2's founder and CEO issued the following response:

As G2 recently celebrated its first anniversary, we were disappointed to
be the subject of baseless claims by the American Society of Travel Agents
(ASTA). It is further disappointing to note that ASTA never contacted G2 to
learn the facts about our business before making their uninformed statements.
G2 was founded by Alex Zoghlin and several individuals in April of 2004
and was funded, owned and controlled by Mr. Zoghlin and these same individuals
until January 2005 when G2 obtained venture financing from Norwest Venture
Partners and TPG Ventures. The majority of equity and voting interests in G2
continue to be held by Mr. Zoghlin and G2 employees.
G2 was not founded, nor is it funded or controlled by any individual
airline or collection of airlines. The airlines that have agreed to pre-pay
G2 for distributing tickets will receive the opportunity to hold a very small
collective equity stake in G2 and will not receive, individually or in the
aggregate, the ability to designate any member or members to G2's Board of
Directors or otherwise direct G2's strategic planning or day-to-day
operations.
G2 represents the first real competition that the global distribution
systems have ever faced after enjoying decades of oligopoly power.
Unfortunately, these incumbents have shown that they will stop at nothing to
prevent G2 from gaining traction in the marketplace, which includes spreading
fear and misinformation. G2 believes the marketplace will decide on the best
solution and encourages all players in the industry to seek new levels of
innovation for our nation's travel sellers while helping our airline suppliers
cut costs where possible.
When the Department of Transportation sunsetted its long standing CRS
regulations last year, it indicated its belief that the Internet and new
technologies would bring new and needed competition to existing CRS services
and fees. Consistent with G2's promise to be at the forefront of these market
changes and deliver such competition, G2's innovative technology eliminates
costs from the travel distribution process for travel sellers by offering new
levels of automation, while at the same time charging airlines a fee that is
81% less than the fees they are required to pay the global distribution
systems for an average round-trip reservation.
Specific to claims made by ASTA, G2 does, in fact, fully integrate and
interact with mid and back office automated accounting and reporting systems
used by most agencies today. Moreover, G2 has agreements and letters of
intent with over a dozen airlines, including several that either have limited
or no participation in any global distribution system. Had ASTA contacted us,
they would have found we are the only solution in the marketplace that has no
productivity, exclusivity, screen bias, or MIDT sale language in any of our
contracts -- all issues ASTA is on the record as opposing.
G2 can only imagine why ASTA chose not to investigate even the basic facts
in this matter available on our website, but instead chose to demand that each
of your Departments expend precious resources to do so.
G2 welcomes the opportunity to engage in a dialogue with the Department of
Justice, the Department of Transportation, ASTA and any other interested party
about G2, the revolutionary technology solutions and capabilities travel
agencies will now have access to, as well as the long overdue competition we
bring to the marketplace.

http://www.chicagotribune.com/technology/chi-0505300031may30,1,550491.story?coll=chi-techtopheds-hed

High-tech providers aim to help carriers cut millions in costs