A different type of war: Airlines vs Agent res computers

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I don't pretend to understand all the nuances here, but there are some heavyweight corporate punching going on between the major North American airlines and the travel agent distribution systems (all of which were created originally by airlines, and sold off). American has pulled out of key systems or been kicked out of them. Delta is doing the same. A few years ago during Montie Brewer's presidency, Air Canada kicked off the drive by pulling fares out of the GDS system because they wouldn't build in functionality to book Air Canada's separate add-ons like paid seat selection, lounge passes, etc. All the airlines wanted to maximize the sale of tickets via their own web site to save on the fees they pay these global distribution systems to sell a ticket. And the US carriers now charge for a lot of a la carte services, including a fee for first as well as second checked bags.

Now you have new types of online sales channels like expedia, and here, too, the airlines don't want to pay them fees, they want the GDS systems to charge the customer to recover its costs.

So the war has escalated. Except now, Air Canada has done a 180 of sorts, and signed a new agreement that is being hailed as the second stage of the revolution. Basically, the GDS will accommodate Air Canada's revenue generation desires. What isn't clear is who is going to pay for creating this functionality and how much the airline will pay for bookings.

http://www.tnooz.com/2011/01/13/news/american-airlines-furor-air-canada-travelport-declare-world-peace/