Skift Take
ATPCO's acquisition of fare management tech from SITA probably won't be the last project airlines will reassign. This month's appointment of Alex Zoghlin as CEO of ATPCO suggests further changes are looming.
Airlines have begun to reassign responsibilities for technological development across the organizations they control. One efficiency move came Tuesday when airline-owned ATPCO, formerly known as the Airline Tariff Publishing Company, said it had bought a fare management system from SITA (Société Internationale de Télécommunications Aéronautiques), a tech provider that is also run by the airlines.
The organizations did not disclose deal terms.
ATPCO is taking over the product and customers for Airfare Insight (AFI). About 20 airlines use the system to manage the setting of fares in response to shifting market conditions.
A majority of customers, including Singapore Airlines, Cathay Pacific, Emirates, Qantas, and Virgin Atlantic, support the product's move to ATPCO. None of the others have yet said no, according to ATPCO.
The deal signals a broader refresh. This month, Alex Zoghlin became president and CEO of ATPCO, filling a position vacated when Rolf Purzer retired late last year.
"The airlines have over many years built a lot of industry utilities, not just ATPCO," Zoghlin said. "There's IATA [International Air Transport Association], ARC [Airlines Reporting Corporation], Airlines Clearing House [ACH], UATP [Universal Air Travel Plan, a payment solutions provider], and SITA."
"Over time, there's been some overlap among some of these," Zoghlin said. "This particular [acquisition] is a really good example of all of us getting together to see how we can all work more efficiently and consolidate some of these capabilities."
Adjusting Roles
For decades, SITA has provided communications support for nearly every airline and airport. It has also built software tools to process baggage, track passenger flows, run boarding gates, and identify passengers.
"For the last few years, we have focused on simplifying our portfolio to deliver more value for customers," said Barbara Dalibard, CEO of SITA, in a statement. "This deal represents the latest step in
