02 June 2008

IATA takes a swipe at "Monopoly Suppliers"

IATA at the 64th AGM in Istanbul has been having fun celebrating the end of its paper trail. However it what it describes as "Historic Declaration it makes 6 points. I wont bore you with all of them except one.

• Business partners, in particular monopoly service providers, must become as efficient as airlines are now. If not, regulators must restrain their appetite with tougher regulation.

Now most of you will think this applies to Airports. But I think this is a hidden swipe at Amadeus. Notice I did not say GDSs. Amadeus' monopoly position in several areas is becoming a cause for concern. Without a shadow of a doubt they wield market maker power in both large swaths of the planet and in significant sectors.

I interpret the airlines' 4th point as a challenge.

However this is somewhat of a toothless tiger approach. Who else are they going to turn to?

At least we still have two large scale airframe manufacturers.



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