The company cited "commercial reasons" for the decision. FACE was intended to support the core processes of passenger airlines, such as schedule distribution, reservations, inventory, ticketing and departure control.

The next-generation system was touted as more flexible and more cost-efficient than traditional reservations systems. Lufthansa Systems did not elaborate on the commercial reasons for its decision, but the move came on the heels of Cathay Pacific Airways' announcement that it planned to migrate to the Amadeus Altéa passenger services platform.

Amadeus also won the contract to build the Star Alliance's common reservations platform, which will be based on Altéa. Lufthansa Airlines, the sister company of Lufthansa Systems, is a Star Alliance member.

Lufthansa Systems said the three airlines that had signed on to be FACE customers -- Qatar Airways, BMI and Garuda Indonesia Airline -- still have valid contracts for its existing MultiHost system that can be expanded with Revenue Integrity, Self Service Devices, e-ticketing Hub and other modules.

"We had planned to offer FACE to airlines as a passenger system that is based on new technology. In the development of this highly complex product, we had to rely to a large extent on products and services of different suppliers," the company said in a statement e-mailed to TTU.

"Since the project's launch more than two years ago, progress of the development work has been monitored constantly. After the latest review of the project's progress, and the quality of components delivered by external suppliers in particular, we could no longer assume that we would be able to provide our customers with a product that would meet their requirements within a reasonable time frame and at reasonable costs."

Among FACE's "external suppliers" was Unisys, whose AirCore product was slated to be "the heart" of FACE. AirCore, built on Unisys' "3D Visible Enterprise" technology, provides transactional history and preferences from which future transactions can benefit.

AirCore produces a passenger name record, but the file also includes a full view of the customer relationship, not just a specific transaction. Earlier this year, Lufthansa Systems said it was investing €40 million in FACE.