Sabre and American Airlines extend IT partnership; multi-year agreement paves way for joint technology modernization and innovation
Rhea-AI Summary
Sabre (NASDAQ: SABR) and American Airlines have announced a multi-year renewal of their technology partnership. The agreement includes the continued provision of the SabreSonic® Passenger Service System (PSS) and extends American's subscription to Sabre PRISM, a corporate travel contract management solution.
The partnership has historically driven innovations in the airline industry, including intelligent seat re-accommodation, new inventory capabilities, and enhanced cabin functionality. This renewal follows the previous announcement of American's NDC offers becoming available through Sabre's Global Distribution System (GDS). Additionally, both companies have resolved litigation related to a 2011 lawsuit initiated by US Airways.
Positive
- Multi-year renewal of major technology partnership with American Airlines
- Extension of SabreSonic PSS and Sabre PRISM subscriptions
- Resolution of pending litigation from 2011 US Airways lawsuit
Negative
- None.
Insights
The multi-year renewal of the technology partnership between Sabre and American Airlines represents a significant business win for Sabre. American Airlines, being one of the largest carriers globally, provides a stable revenue stream and validates Sabre's technology solutions in the competitive airline IT space. The extension of both SabreSonic PSS and PRISM subscriptions, following the NDC integration, demonstrates a deepening relationship that could translate to enhanced revenue opportunities.
The resolution of the 2011 lawsuit removes a significant legal overhang, potentially reducing future legal expenses and improving investor confidence. While specific financial terms aren't disclosed, the agreement's multi-year nature suggests predictable future cash flows. For Sabre, retaining a flagship client like American Airlines reinforces its market position and could help in winning new airline customers.
The partnership renewal highlights Sabre's strong competitive position in airline IT infrastructure. The SabreSonic PSS platform's continued evolution, including intelligent seat re-accommodation and enhanced inventory management, demonstrates Sabre's innovation capabilities. The integration with NDC offers through Sabre's GDS creates a comprehensive ecosystem that strengthens the company's market position.
This technology collaboration has broader implications for the travel industry, as innovations developed for American Airlines often become industry standards. The partnership's focus on modernization suggests potential development of new features leveraging emerging technologies, which could create additional revenue streams and competitive advantages for both companies.
The renewal signals the continuation of an exciting era in the partnership between American and Sabre as the companies look to push the boundaries of modern travel technology and significantly enhance the traveler experience, together.
"At American, our customers are at the center of each decision we make," said Scott Laurence, Senior Vice President of Partnerships and Retailing at American Airlines. "American is focused on leveraging solutions, like SabreSonic, that meet the needs of our customers and our team, and we're pleased to extend our partnership with Sabre."
The partnership between Sabre and American over the past decade has had an important impact on the SabreSonic PSS, ultimately influencing innovations and features that benefit the entire airline industry and travelers alike, including intelligent seat re-accommodation, new capabilities in inventory, and enhanced cabin functionality and rules.
"American is a leader in the global airline space, and we are proud our solutions continue to meet and exceed its needs and expectations in the ever-evolving travel industry," said Roshan Mendis, Chief Commercial Officer, Sabre Travel Solutions. "American is one of our most valued customers. We look forward to this ongoing partnership and we are committed to supporting American's commercial and technology strategies and efforts to put customers' needs front and center."
In addition to renewing the SabreSonic agreement, American has extended its subscription with Sabre PRISM, a corporate travel contract management solution. These agreements follow last year's announcement of availability of American's NDC offers through Sabre's Global Distribution System (GDS).
Last week, Sabre and American resolved litigation in connection with a 2011 lawsuit initiated by US Airways.
About Sabre Corporation
Sabre Corporation is a software and technology company that takes on the biggest opportunities and solves the most complex challenges in travel. The Company connects travel suppliers and buyers around the globe and across the ecosystem through innovative products and next-generation technology solutions. Sabre harnesses speed, scale, and insights to build tomorrow's technology today – empowering airlines, hoteliers, agencies, and other partners to retail, distribute and fulfill travel worldwide. Headquartered in Southlake, Texas,
About American Airlines Group
As a leading global airline, American Airlines offers thousands of flights per day to more than 350 destinations in more than 60 countries. The airline is a founding member of the oneworld® alliance, whose members serve more than 900 destinations around the globe. Shares of American Airlines Group Inc. trade on Nasdaq under the ticker symbol AAL. Learn more about what's happening at American by visiting news.aa.com and connect with American @AmericanAir and at Facebook.com/AmericanAirlines. To Care for People on Life's Journey®.
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SOURCE Sabre Corporation
FAQ
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