PARSIPPANY, N.J., Aug. 26 /PRNewswire/ -- Galileo International, Inc., a
leading global distribution system (GDS) and subsidiary of Cendant Corp.
(NYSE: CD), today responded to Northwest Airlines' proposal, announced
Tuesday, to impose new ticketing fees on all domestic tickets issued through
U.S. and Canadian travel agencies using a GDS.
Galileo announced that Northwest is in violation of its 2003 Preferred
Fares Select (PFS) agreement. PFS participating carriers are expected to
provide Galileo agencies with a "level playing field." As a result of
Northwest's violation of its PFS agreement, Northwest will not be afforded the
same benefits provided to participating carriers that honor their commitments
under their PFS agreements, such as:
-- A more prominent display for Galileo agencies;
-- Access to Galileo low fare shopping and flight information tools; and
-- Access to the full PFS distribution discount.
These same benefits will be withheld from any PFS participating carrier
that violates their agreement by charging Galileo agencies a fee on tickets
issued through Galileo that is not also applied to tickets offered on the
airline's own Web site.
"We have worked very hard to improve our position and overall relationship
with carriers and have taken the lead in addressing industry concerns
regarding distribution costs and content with innovative programs such as
Preferred Fares Select," stated Ken Esterow, executive vice president,
supplier services, Cendant Travel Distribution Services. "We are disappointed
that Northwest has unilaterally taken this action after they made a public
commitment to 'expand access to Northwest fares and content where it is
economically viable for Northwest to do so' as stated when they joined
Preferred Fares Select just last year."
"Northwest's actions unfairly disadvantage travel agents and ultimately,
consumers," stated Mitch Gross, executive vice president and general manager
for Travel Agency Services, The Americas. "Galileo agencies and others
recognize this action for what it is -- essentially a fare increase which will
be passed on to consumers. These agencies have indicated they will direct
their business to those carriers that are supportive of the GDS distribution
channel."
About Galileo International
Galileo International is a global technology leader. Its core business is
providing electronic global distribution services for the travel industry
through its computerized reservation systems, leading-edge products and
innovative, Internet-based solutions. Galileo is a value-added distributor of
travel inventory dedicated to supporting its travel supplier, agency and
corporate customers and, through them, expanding traveler choice. A subsidiary
of Cendant Corporation (NYSE: CD) and part of Cendant's Travel Distribution
Services Division, Galileo is headquartered in Parsippany, NJ, and has offices
worldwide. Visit http://www.galileo.com.
About Cendant Travel Distribution Services
Cendant Corporation's (NYSE: CD) Travel Distribution Services Division, is
one of the world's largest and most geographically diverse collections of
travel brands and distribution businesses. The division, employing nearly
5,000 people in more than 116 countries, includes: Galileo, a leading global
distribution system (GDS), serving more than 44,000 travel agencies and over
60,000 hotels; hotel distribution and services businesses (TRUST, THOR, WizCom
and Neat Group); leading travel agencies (CheapTickets.com, Lodging.com,
HotelClub.com and RatesToGo.com); Shepherd Systems, an airline market
intelligence company; Travelwire, an international travel technology and
software company; Travel 2/Travel 4, a leading international provider of long-
haul air travel and travel product consolidator; and Travelport, a provider of
online global corporate travel management solutions.
SOURCE Galileo International
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Related links:
http://www.galileo.com
http://www.cendant.com
CONTACT:
Jill Brenner of Cendant Travel Distribution
Services, +1-973-496-5870, TDS.CorpComm@cendant.com
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