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In the US, United Airlines sells 50 percent of Covia t


In the US, United Airlines sells 50 percent of Covia to USAir, British Airways, ... Guidelines for the Conduct of Travel Agents in order to reduce costs for airlines. ... – PowerPoint PPT presentation

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Title: In the US, United Airlines sells 50 percent of Covia t

  • The beginning

TAUC Travicom Airline User Committee
  • Where it started?
  • Travicom, a computer systems company providing
    airline reservations systems for travel agents,
    was formed in the 1970's
  • Travicom was launched in 1976 and was the world's
    first multi-access reservations system.
  • It allowed agents and airlines (49) to
    communicate via a common medium, handling 80 of
    UK trade bookings.
  • BA (82) was Travicoms major share holder, along
    with BCAL (18) and which BA acquired in 1982.

TAUC Travicom Airline User Committee
  • What was TAUC?
  • Formed in 1977, TAUC was a forum for airlines to
    meet with Travicom to review and discuss the
    technical and commercial requirements of the
    airlines, as well as development of the system
  • Travicoms senior management, Peter Short
    (Travicom Ltd co-founder) and Frank Manners
    participated, as did British Airways managers and
    the largely local representatives of the many
    carriers on the system.
  • TAUC was an airline driven committee with
    Travicom and over time other companies invited to

TAUC Travicom Airline User Committee
  • The aims of TAUC.
  • TAUC acted as a pressure group to try to ensure
    fair play was observed in terms of system
    development and new functionality to the member
  • It got involved in such issues as the imposed
    pricing change from flat rates to transaction
    based charges.
  • The development of automated ticketing
    functionality, by TAS based in Maidenhead and
    launch of Travicom 2 prior to the arrival of
  • These were also the days of the Henley Regatta
    outings and watching cricket at Edgbaston!!!!
    Another world!!

TAUC Travicom Airline User Committee
  • The Travicom system was eventually replaced by
    Galileo which saw an Amsterdam start-up operation
    in 1987.
  • In 1988 Travicom Ltd became the distribution
    company for Galileo UK.

TAUC Travicom Airline User Committee
  • 1987 Extracts from Galileo history
  • In response to the growing need for CRS
    automation in Europe, The Galileo Company Ltd is
    incorporated in England and Wales by shareholders
    British Airways, Swissair, KLM Royal Dutch
    Airlines, Alitalia and Covia.
  • The companys headquarters are in Swindon, UK.
    In the US, United Airlines sells 50 percent of
    Covia to USAir, British Airways, Swissair, KLM
    Royal Dutch Airlines and Alitalia, creating the
    Covia Partnership.

  • Other CRSs start to enter the UK market place and
    TAUC transitioned to CARDS in 1988.
  • Since 1986, over 90 airlines have been members.
    Some have now, sadly, ceased operations as
    consolidation and competition have changed the
  • In that time, there have been more than 32
    non-airline companies participating.

  • In 30 years we have seen the shift of bookings
    being made 100 with airlines to the majority
    being made in the CRSs, and now the swing to
    online bookings with Airline and Internet
  • We have seen automation of airline offices
    and the automation of travel agents.
  • We have seen airlines merge and others
    disappearing and even some of our members moving
    to and from Airlines and CRSs.

Winds of Change
  • We have seen consolidation of CRSs, with
    Genesis, Covia swallowed by Apollo.
  • Apollo and GETS was merged into Galileo.
  • ( We never did see Apollo and Galileo merged
    into one system.)
  • We have seen System One merged into Amadeus
    and ownership of most CRSs move from airlines to
    private ownership.
  • Oh yes, and ownership shared between CRSs,
    first with Abacus in partnership with Worldspan
    and then Abacus in partnership with Sabre.
  • More recently the growth of TravelSky, a
    major CRS in China.

The CRSs
  • CRSs have played an important role including
    widening Distribution channels and relieved the
    airlines of much of the sales work previously
    done by agents internally.
  • However, there have been spiraling costs and
    nowadays airlines are working to reduce those

CARDS Initiatives
  • July 1995. Provided valuable input to the CRS
    Charging Principles Survey. This survey was
    conducted by SH and E, Consultants of the EU for
    the revisions to the EU CRS Code of Conduct.
  • Guidelines for the Conduct of Travel Agents in
    order to reduce costs for airlines.

  • 1995. Participated 61 carriers.
  • 23 European, 14 Asia/Pacific, 8 N. America, 5 S.
    America/Caribbean, 7 M.E, 4 African.
  • 2000. Participated 68 carriers.
  • 27 European, 15 Asia/Pacific 7 N. America, 9 S.
    America/Caribbean, 4 M.E., 6 African.

Some discussion items at CARDS
  • EU Code of Conduct prohibits cancellation charges
    on net billings.
  • Passives should only be charged if ticketed.
  • CARDS called for unticketed passives not to be
  • Automatically credit rejected Passives.
  • Passives should not be included in CRS

  • Presentations by the CRSs.
  • Presentations by Vendors.
  • Presentations by Airlines.
  • Examples of abuse with different airlines.
  • Awareness and Sharing information.

Examples of Abuse
  • Fare quotes made by agents using Passive PNR with
    Name field Mr. Fare Quote costing one airline
    thousands of dollars.
  • Fictitious PNRs.
  • PNR round the world itinerary using many
    different airlines blocking First Class space.
    (advised the other airlines in the itinerary).
  • 3 agencies found to be robotically creating
    multiple Passive PNRs with 4 names in each PNR
    which cost the airline 12,000 in CRS fees in one
    month. This was traced back over 2 years. The
    agency was shut off by the CRS. (However, a few
    months later the same agency was back doing the

  • CARDS has played, and will continue to play, a
    major role in educating airline staff, bringing
    together the airlines, the CRSs and assisting
    airlines to better manage Distribution costs,
    using automated solutions and encouraging the
    CRSs to work with airlines to obtain better

CARDS today and the future
  • Distribution is constantly changing.
  • Every year, there are new initiatives by the CRSs
    and the airlines need to keep up with the
  • Equally, there is a challenge for the CRSs which
    need to keep up with the changes in the airline

CARDS today and the future
  • Airline management changes and we have seen
    airlines leave CARDS and come back again years
  • CARDS has a wealth of experience in its members
    in the airlines, the CRSs and vendor companies.

Airline Members
  • Use CARDS to educate your sales staff, your
    Distribution departments and even your yield
    management people.
  • For those Sales staff attending CARDS, pass on
    the information to your Head Office Marketing and
    Distribution staff.
  • CARDS needs your support

CRS members
  • We appreciate your involvement and look forward
    to learning new developments.
  • We also need to hear your problems so that
    airline members can take the appropriate action
    to remedy those problems.
  • Finally we need the CRSs to listen and help us to
    reduce wastage so that we can all benefit.

  • That concludes the presentation.
  • If you have any ideas that would improve CARDS
    then please let us know.
  • Q. and A.