Google-ITA Software deal: Continental cites alternatives, Alaska mentions benefits

Airlines are doing a lot of watching and waiting about the Google-ITA Software deal, but a Continental Airlines official today noted that alternatives to ITA technology are available.

During Continental’s second-quarter earnings conference call today, Chief Marketing Officer Jim Compton said there are internal and external alternatives to the airline’s use of ITA’s flight shopping and pricing service.

“… We are going to watch the business plan at Google, and ITA has been a good business partner, but clearly [it's] way too early for us to comment on that, but knowing that there are alternatives, both internal [and] external to that shopping solution.”

Compton didn’t specify what those alternatives might be, but the “external” ones may include, to varying degrees, an assortment of tools from Expedia, Travelport, Amadeus, Everbread and Vayant.

Compton said Continental was an early adopter of ITA’s QPX system, which “has served us well.”

Continental chairman and CEO Jeff Smisek was asked whether Continental would file a complaint in any potential Justice Dept. antitrust probe of the merger, and he responded: “We are not going to comment on that.”

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Alaska Airlines also uses QPX on its website and Joseph Sprague, vice president of marketing for Alaska Air Group, said the airline is studying the deal closely “to see what it might mean.”

“I think there is some intrigue that might even further strengthen ITA in terms of some of their research and development activities that could benefit us,” said Sprague, during the airline group’s second quarter earnings call today. “And so, like the rest of the industry, we’re going to be watching that closely over the next few months to see if that gets approved and how that moves forward.”

Other airline customers of ITA, including US Airways and Virgin Atlantic, also have chimed in about the Google-ITA Software deal over the last few days, according to Dow Jones Newswires.

Rest assured that ITA has taken more than a few calls from its airline customers in the weeks since the deal was announced.

ITA wouldn’t comment on any discussions which reportedly have taken place.

ITA spokeswoman Cara Kretz said: “Until the deal closes, we cannot speak for Google as to its plans for ITA post-closing, nor do we comment on private conversations between ITA and its customers. ITA and Google remain separate and independent businesses until the closing. We don’t have any further comment.”

Comments

  1. I’m really going to like watching this one play out. Strategy at EVERY turn from many players.

    Kevin

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