Seven airlines are backing a new low-cost airline booking system that threatens the existing big GDS’s.
G2 SwitchWorks said five of the airlines have agreed to pay it more than $20 million in advance fees in exchange for discounts and an ownership stake, said the Fort Worth Star-Telegram.
American, America West, Continental, Delta and Northwest are among companies putting up money. Two other airlines, United and US Airways, also say they will use the system.
The savings to the airlines could be significant. G2 is expected to charge $3 per ticket, compared to $12 for Sabre.
American Airlines is not unhappy with their GDS supplier but G2 is offering a far better price, according to Billy Sanez, a spokesman for American.
G2 could be operational by this summer.
The company was formed last year by a former Orbitz executive, among others.
Report by David Wilkening
