Amadeus IT Holding, S.A. and Subsidiaries - Investor relations at ...
Amadeus IT Holding, S.A. and Subsidiaries - Investor relations at ...
Amadeus IT Holding, S.A. and Subsidiaries - Investor relations at ...
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AMADEUS <strong>IT</strong> HOLDING, S.A. AND SUBSIDIARIES<br />
DIRECTORS’ REPORT FOR THE YEAR ENDED DECEMBER 31, 2011<br />
America, a new multi-year agreement with Frontier Airlines was announced, providing<br />
<strong>Amadeus</strong> customers with the airline’s full range of content. This included ancillary<br />
services such as the carrier’s popular STRETCH se<strong>at</strong>ing choice, which offers extra<br />
legroom. Frontier is a subsidiary of Republic Airways <strong>Holding</strong>s <strong>and</strong> offers routes to<br />
more than 80 destin<strong>at</strong>ions in the United St<strong>at</strong>es, Mexico <strong>and</strong> Costa Rica. <strong>Amadeus</strong><br />
North America also announced a new global distribution agreement with Canada’s<br />
Sunwing Airlines, a Toronto-based carrier serving Canadian, US <strong>and</strong> European<br />
destin<strong>at</strong>ions, as well as cities in Mexico, the Caribbean <strong>and</strong> Central America, <strong>and</strong> with<br />
Canada’s third largest airline Porter Airlines. A global distribution contract was also<br />
signed with the fast-growing, American low-cost carrier Vision Airlines.<br />
� Additionally, easyJet <strong>and</strong> <strong>Amadeus</strong> announced the renewal <strong>and</strong> extension of a<br />
distribution agreement which enables all travel agencies connected to <strong>Amadeus</strong><br />
around the world to book easyJet flights, bags <strong>and</strong> speedy boarding in the <strong>Amadeus</strong><br />
global distribution system. An <strong>Amadeus</strong> commissioned study which timed travel<br />
agencies making easyJet bookings found th<strong>at</strong> making the booking in <strong>Amadeus</strong> was<br />
75% faster <strong>and</strong> more efficient than booking on the airline’s website, principally<br />
because of the integr<strong>at</strong>ion with the agency mid- <strong>and</strong> back-office, which means th<strong>at</strong><br />
agents can issue customer invoices autom<strong>at</strong>ically without re-entering trip details.<br />
Travel agencies will be able to book easyJet’s alloc<strong>at</strong>ed se<strong>at</strong>ing in the <strong>Amadeus</strong> GDS<br />
when the airline rolls out the new service during spring 2012.<br />
� European low-cost carrier Germanwings launched a new distribution solution using<br />
<strong>Amadeus</strong> technology to sell, via travel agencies, tickets <strong>and</strong> combined itineraries with<br />
Lufthansa, its full-service carrier parent. <strong>Amadeus</strong> is able to offer this solution thanks to its<br />
Common <strong>IT</strong> Pl<strong>at</strong>form (C<strong>IT</strong>P) which is shared by travel agents <strong>and</strong> airlines for all their<br />
pricing, availability <strong>and</strong> Passenger Name Record (PNR) management. <strong>Amadeus</strong> provides<br />
a distribution layer th<strong>at</strong> processes all Germanwings bookings made by travel agents <strong>and</strong><br />
links to Lufthansa’s ticketing server. This technology model is possible thanks to<br />
Germanwings’ recent agreement with Lufthansa based on which Lufthansa will act as a<br />
sales agent <strong>and</strong> valid<strong>at</strong>ing carrier (or issuing carrier) for the low-cost airline.<br />
� Low-cost carriers continued to be an area of growth for <strong>Amadeus</strong>. Low-cost carrier<br />
bookings from travel agencies using <strong>Amadeus</strong> in 2011 increased by 20.0% year-on-year.<br />
During this year <strong>Amadeus</strong> has already implemented access to the content of an additional<br />
nine low-cost <strong>and</strong> hybrid carriers, bringing the number of low-cost carriers bookable in<br />
<strong>Amadeus</strong> to a total of 70.<br />
� The Thai low-cost carrier Nok Air became the first airline in Asia Pacific to purchase<br />
<strong>Amadeus</strong> Total Dem<strong>and</strong> by airconomy, a new d<strong>at</strong>a solution th<strong>at</strong> provides airlines, airports<br />
<strong>and</strong> travel agencies with a comprehensive <strong>and</strong> accur<strong>at</strong>e view of market dem<strong>and</strong> on any<br />
given route.<br />
� Facilit<strong>at</strong>ing ancillary services str<strong>at</strong>egies for airlines remains a focus for <strong>Amadeus</strong>, <strong>and</strong><br />
during the year we have made significant progress in contracting <strong>and</strong> implementing our<br />
<strong>Amadeus</strong> Airline Ancillary Services, an innov<strong>at</strong>ive <strong>and</strong> customisable solution which allows<br />
airlines to sell ancillary services (display, book, price <strong>and</strong> pay) across all channels with a<br />
fully integr<strong>at</strong>ed search, shopping <strong>and</strong> booking workflow, all in full compliance with industry<br />
st<strong>and</strong>ards. Already 34 airlines have signed up for <strong>Amadeus</strong> Airline Ancillary Services.<br />
Among these airlines, Cimber Sterling <strong>and</strong> Corsairfly were the first airlines to go live <strong>and</strong> in<br />
production, selling ancillary services on their websites <strong>and</strong> via travel agencies in Denmark,<br />
Norway, Sweden <strong>and</strong> France. Other like KLM <strong>and</strong> Iberia followed <strong>and</strong> are also now live in<br />
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