News GDS’ must adapt to LCC and legacy carrier Asian innovation

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GDS’ must adapt to LCC and legacy carrier Asian innovation

Low cost airlines and 'legacy carriers' are catering to different markets and both should be accommodated by GDS systems.

Low cost airlines and more established ‘legacy carriers’ are catering to different markets – and both should be accommodated by GDS systems, it has been claimed.

GDS specialist Travelport told Eyefortravel.com that the Asian market was experiencing a low cost carrier (LCC) travel boom, but insisted that legacy carriers are also innovating.

Simon Nowroz, Travelport managing director for Asia, said: "In Asia we have seen new low cost terminals and airports in cities like Singapore and Kuala Lumpur built to cater for the ever growing number of low cost carriers."

The recent construction of the dedicated Singapore Airport Budget Terminal marked an encroachment of low cost airlines on the traditional territory of legacy carriers, but the more established airlines were claimed by Mr Nowroz to be taking on their low budget rivals with newly competitive pricing, as well as flight route expansions and investment in new aircraft.

"Legacy carriers are not standing still and cannot be underestimated," he added, suggesting that a strong market remained for both – and could be best exploited by adapting GDS products to new LCC involvement.

Galileo Low Cost Air in the Pacific was cited as a means of capturing web fares outside the GDS and comparing them with GDS fares within a single display, while the group has also acquired GDS Worldspan and combined it with Galileo to create Travelport GDS, providing wider resources and supplier relationships.

Travelport rival Sabre last year claimed that the most important market in Asian aviation was not LCCs but value focused carriers (VFCs), identifying a hybrid of traditional airlines and budget carriers that corresponded to the nature of the Asian travel market.

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