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"Super" airlines and higher prices

14 Oct 2008 by Mark Caswell

Travel technology provider Amadeus says the current turmoil in the aviation industry will lead to consolidation, reduced capacity and higher prices.

Stephen Durrand,
managing director UK & Ireland for Amadeus, predicted the rise of so-called
“super” airlines over the next five years: “We are seeing survival of the
fittest. The big are going to become bigger. The small will be forced to merge
to achieve an economy of scale. Super airlines will use their muscle to
negiotiate better rates, and we will see reduced capacity and higher rates.”

Durrand also commented
on the current state of air travel as being in need of a makeover. “It is a better
experience to take a bus over an aeroplane. Many UK airports do not provide a
relaxing, pleasurable experience. Is it a shopping mall or an airport? The break-up
of BAA might help.”

Durrand was
speaking at the UK quarterly press briefing, where Amadeus also announced the
launch of a new traveller tracking tool in 2009, which will automatically allow
TMCs to track where travellers are at any given time. This may help in terms of
corporate responsibility, as it will act as an automatic panic button during an
emergency, and allow companies to easily locate their employees to get them
home safely.

Amadeus also
indicated that Easyjet’s launch on the Global Distribution System had been a
success, and more airlines would be likely to start using Amadeus, including
Monarch Airlines.

Report by Sara Turner

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