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Distribution: Sabre Rattling

American Airlines aims to revolutionize ticket distribution with its direct connect platform, but first it has to overcome spirited opposition from GDSs and online travel agencies.

Every few years when airlines’ contracts with GDS companies are slated to expire, the two sides engage in posturing, righteous indignation and veiled and not-so-veiled threats. Then, because their shared history and mutual dependence lock them into a relationship not unlike conjoined twins who are rather sick of each other, they come to terms, sign contracts and coexist until the next round. So a casual observer could be forgiven for thinking that American Airlines’ ...

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