United Signals It Wants a Better Deal with Reservation Middlemen
Photo Credit: Some passengers may smile at United rolling out discounted products like basic economy seats. But United's top brass is frowning at the possible technology and business strategy challenges of selling these products via travel agency networks. United Airlines
Skift Take
If United were Facebook friends with reservation systems like Sabre and Amadeus, it would have just changed its relationship status from "Friends" to "It's complicated." New President Scott Kirby is worried how those companies will display its new basic economy product to travel agents and (indirectly) to ticket buyers.
Scott Kirby has only been president of United Airlines since late August, but he is already making waves. This week, he suggested -- with the support of CEO Oscar Munoz -- that the airline may need to take a tougher stance toward the technology companies that act as middlemen between airlines and travel agencies.
Kirby called out distribution systems on what he believes are unfair prices and inflexible technologies during his past executive roles at American Airlines, US Airways, and America West.
Last October, he even testified in a US Airways lawsuit against one of the companies, Sabre, and accused its chief executive of, among other things, having threatened his airline with "an ultimatum" that Sabre would "boycott" displaying his fares to agents unless the airline accepted Sabre's contract terms.
This week, Kirby, now at United, made some intriguing remarks when answering questions from analysts on a quarterly earnings call. What United does next could have a ripple effect
