SpiceJet embraces Amadeus after Air India moves away

Ajay Singh-promoted budget airline SpiceJet, which is making efforts to improve its distribution in the international market, has appointed travel technology solutions provider Amadeus as its first global distribution partner.

The entire ticketing inventory will continue to be available to domestic travellers through existing channels as well as with Amadeus with a different pricing, the airline said in a statement.

According to Ajay Singh, chairman and managing director, SpiceJet, the new distribution network will enable a large number of customers to connect with the airline's huge domestic and growing international network. Amadeus provides its travel technology solutions to over 440 carriers, including over 100 low-cost and full- service carriers globally. Amadeus India is wholly owned by Bird Group, one of India's largest travel conglomerates.

The Gurugram-based carrier operates an average 516 flights daily connecting 59 destinations, including to eight international airports with a fleet of 48 Boeing 737s, and 27 regional jet Bombardier Q-400s. It also has a freighter, a Boeing 737, in the fleet.

There are three major global distribution companies (GDS) companies in India and globally – Amadeus, Sabre and TravelPort. GDS is a computerised network system that enables transactions between travel industry and service providers, which mainly include airlines, hotels, vehicle rental companies. It provides real time inventory of the airline seats, hotel rooms, or number of cars available. The airlines charge a surcharge from the passengers for GDS.

Recently, national carrier Air India, which is sitting on a pile of Rs 55,000 crore debt, had in December shifted away from Amadeus to the UK-based Travelport, a move it claimed will save over Rs 3,000 crore in about six years. Rival airline IndiGo is also on TravelPort.

The issue had created a controversy a hue and cry in the travel industry as Amadeus is the leading GDS provider in India, Middle East and Europe. According to an estimate, about 55% of travel agents in India use Amadeus, and the change was bound to affect them. Air India, on its part, claimed that all efforts were made so that the passengers were not affected.

Air India