[ad_1]
Sabre, the largest provider of airline information technology to Aeroflot, said on Thursday morning it would stop providing distribution services to the Russian flag carrier, essentially preventing it from selling tickets. Sabre is among the Western travel technology giants, along with Amadeus and Travelport, that are feeling pressure to retreat from Russia while that country invades Ukraine.
“We are taking a stand against this military conflict,” said Sean Menke, CEO of Sabre. “We’re complying, and will continue to comply, with sanctions imposed against Russia. In addition, today we announced that Sabre has terminated its distribution agreement with Aeroflot, removing its content from our GDS [global distribution system].”
The move comes as part of a broader retreat from Russia. Expedia has stopped selling travel to and from Russia, Boeing has suspended major operations in Moscow, and multiple airlines have stopped flying to, and over, Russia. Meanwhile, enterprise software giant Oracle has “suspended all operations” in Russia while Apple has stopped selling its devices there.
The next moves may come from the companies that supply technology to airlines for handing reservations and running operations.
“There’s likely one final action that can level, instantly, Russian commercial aviation,” tweeted Jon Ostrower of The Air Current on Tuesday. “That’s Sabre, the IT backbone on which Aeroflot runs. No Sabre, no reservations. No reservations, no airline.”
There are two sides to the services the tech vendors provide. One side is their reservation systems used by hundreds of thousands of online and retail travel agencies and corporate travel management companies.
Both in the last year and in the pre-pandemic year of 2019, Amadeus had the largest share of distribution in Russia, Sabre had the second most, and Travelport had the third most, according to Travelport.
Amadeus and Sabre, but not Travelport, provide passenger service systems to airlines to help run their operations, too.
“Reservations, passenger service, operations, network planning, and management are core automation, commercial, and operating systems, without which airlines cannot function, except minimally and manually,” said Robert Mann, an industry consultant.
Skift contacted for comment the companies, which are feeling pincered by geopolitical events.
Travelport declined to provide a comment by our publication time.
Amadeus was noncommittal.
‘‘Our immediate focus is the safety and wellbeing of our colleagues and their families in Ukraine,” a spokesperson said. “We’re constantly monitoring the situation, which is evolving rapidly. We continue to assess and evaluate the potential impact of international sanctions imposed by the UK, the U.S., and the European Union on Russia and any counter-measures by Russia.”
Some analysts thought any action at this point would be superfluous.
“GDS stands for ‘global distribution system,’” said Mike Boyd, president of Boyd Group International. “But there’s nothing to globally distribute in Russia. There are new few countries they can fly to.”
“I give it five to seven days before domestic aviation is grounded,” Boyd said. “With many planes repoed [being reposessed], with Boeing suspending parts, maintenance, and technical support services, and with passengers being hard up for cash, Russian airlines will mostly stop flying.”
But some industry observers championed action for a swifter and more united response.
“Sabre provides thee services to airlines globally, including within Russia,” Mann said. “As many nations have now banned commercial relationships with Russian businesses and individuals, it would be appropriate for Sabre to recuse itself, as many other businesses have already done.”
Another analyst said it would be easier to cut off one type of product than another.
“It’s reasonable for GDSs to decide not to sell Russian flights if they so choose, but it’s a lot harder to make the decision to turn off the airline reservation system because that effectively shuts the company down,” said Brett Snyder of Cranky Flier.
“I suppose Boeing is doing that to some extent by not supporting Russian airlines right now, but this seems like a step even further,” Snyder said. “Then again, I would certainly understand Sabre making the decision to take a moral stand. It’s really something that each company needs to decide.”
A Decision for IATA, Too
Mann also argued that the leading industry body the International Air Transport Association, or IATA, should stop facilitating payments and commerce for Russia-based airlines.
We asked that organization for comment.
“We comply with all sanction regimes applicable to us,” a spokesperson said. “This has reduced IATA’s business activity in Russia. Prior to the imposition of sanctions, some 140 airlines were doing business in Russia through the IATA BSP [billing and settlement plan].”
s a result of the conflict and the sanctions, many people who purchased tickets will have had their trips canceled and will be seeking refunds, which would typically be processed through the BSP if the tickets were purchased through a travel agent. Closing the BSP would eliminate this recourse.
“When peace is achieved, people will want to travel and reconnect,” an IATA spokesperson said. “Maintaining the settlement infrastructure that underlies the global air transport system to the extent possible will help to accommodate these needs and desires.”
Meanwhile, many travel tech companies, including Kiwi.com and Hopper and Sabre, have been donating money to relieve efforts.
“To help support humanitarian programs in the region, Sabre, which has approximately 1,500 team members in Poland, has donated $1 million to the Polish Red Cross,” Menke of Sabre said.
[ad_2]
Source link