New company offers low cost airline distribution

CHICAGO -- G2 SwitchWorks, a new company with a management team of Orbitz alumni, has announced that seven major airlines have signed letters of intent for the development of a new travel distribution network called TRUEconnect. G2 Switchworks founder and CEO Alex Zoghlin, formerly CIO at Orbitz, said the system will lower industry distribution costs while enabling agencies to streamline their workflows and reap significant cost savings. The airlines, representing about 80% of total third party or agency sales, are Alaska Air Group, Continental Airlines, Delta Air Lines, Northwest Airlines, UAL Corporation and US Airways. The seventh company was not announced.

"G2 brings long overdue competition to the travel distribution marketplace, introducing a solution that is both lower in price and more robust in agency features than existing global distribution systems," Zoghlin said. TRUEconnect will enable participating airlines to distribute content to key travel sellers at a price point that is a fraction of the cost to distribute via the existing global distribution systems (GDS).

"Lowering our distribution costs has never been more critical and G2's TRUEconnect helps answer that call, introducing comprehensive low-cost competition to the distribution marketplace," said Al Lenza, vice president of distribution and e-commerce for Northwest Airlines.

New travel technologies

G2 claims a focus on introducing new technologies to service agencies and travel sellers. The company says TRUEconnect provides agencies with a full suite of air reservation and servicing capabilities that far exceed the level of functionality they receive today through their GDS. G2's new technologies slash agency customer servicing and support costs by dramatically increasing their productivity on all transactions, regardless of source.

"Rather than simply shifting existing distribution costs between the airline and the agency, G2's TRUEconnect is a new technology that removes costs from the distribution process," said John Slater, managing director Distribution & E-Commerce for Continental Airlines. "G2's end-to-end solution enables significant airline volumes to flow over a lower cost distribution alternative while raising the bar for functionality delivered to agency customers."

Zoghlin lists these features for TRUEconnect:

▪ Comprehensive and unbiased shopping capabilities for over 450 airlines, using robust availability and pricing technology from ITA Software, the world's leading airfare search engine

▪ Industry leading public content, sophisticated private faring capabilities and complete reservation services for partner airlines

▪ Fully automated electronic ticketing, interline e-ticketing and paper ticketing capabilities that retain an agency's ARC identity and allow full and complete customer servicing support

▪ Complete integration into agency mid-office and back office systems

"G2 Switchworks brings outstanding functionality and lower costs to the distribution marketplace," said Doug Leo, US Airways vice president of sales. "We are looking forward to being one of G2 Switchworks launch customers."

High volume sellers

G2 Switchworks says it offers no-cost integration services to high volume partner agencies and travel sellers, providing a completely integrated end-to-end solution. G2 will also provide support technology such as transaction switching (TRUEswitch) and "Super PNR" logic, if needed, to agency customers. TRUEswitch and Super PNR functionality allow travel sellers to take control of their content and decide where travel transactions should be routed based upon their business logic. Agencies retain the ability to seamlessly view and control data, and service their customers regardless of product booking source.

"The TRUEconnect network frees travel sellers and suppliers to take control and individualize their relationships. G2 is a complement to a supplier's direct distribution strategy that also reflects the importance and unique needs of leading travel sellers," Zoghlin said.

"Alaska Airlines is looking for ways to reduce our distribution costs in efforts to keep fares low for our customers," said Steve Jarvis, vice president of e-commerce and distribution for Alaska Airlines. "The cost of existing distribution avenues is hard to justify in a low fare marketplace. G2 can provide Alaska a way to continue participation in all segments of our business but in a cost effective way,"

G2 SwitchWorks says it is building the next generation of travel commerce services, along with a private distribution network (TRUEconnect). The company offers integration services to suppliers, travel sellers and corporate travel departments. G2 is a privately funded independent company that does not compete with its agency customers by operating an online or offline agency.

First employee at Orbitz

Zoghlin was the first employee at Orbitz, serving as the chief technology officer from 2000 to 2003, and led the launch of Orbitz in June 2001. Prior to Orbitz, he founded and served as CEO of Neoglyphics, a Web development company serving Fortune 500 companies, from 1995 to 1998. Zoghlin was an original member of the Mosaic Development Team at the National Center for Supercomputing Applications at the University of Illinois and co-wrote the first Web server.

Other Orbitz alumni now part of the G2 management team are:

Ellen Lee is the vice president for business development at G2 Switchworks. From 2000 to 2003, Lee worked for Orbitz as the vice president for new ventures. Previously, she was with American Airlines, Delta Air Lines, ATA and Independence Air.

John Sokel is the vice president, development, for G2 Switchworks. Previously, he was the lead software engineer for the Orbitz.com booking engine and was responsible for all code, pre and post launch activities. He also served as the chief engineer for the Orbtiz Supplier Link. Also, he built multiple GDS native and structured data interfaces, including Worldspan, Amadeus, and Orbitz Supplier Link airline channels.

Michael Harbin is vice president, technology services, for G2. As director of technology for Orbitz from 2001 to 2004, he was responsible for development and implementation of Supplier Link, Orbitz.com business logic, customer service and ticketing technology. G2 considers Harbin to be a fares and pricing expert and fully versed in all major GDS and customer service technology. While director of consulting Services for Datalex USA, he was responsible for design, business logic and implementation for many travel company web sites and booking engines including Orbitz, Delta Air Lines, Worldspan, major international airlines and large volume travel agencies.

Roger Liew, chief technology officer for G2, was the first software developer at Orbitz. He assembled and led the development team to 90 software engineers from 2000 to 2004. Liew was responsible for the technical architecture and software development for the Orbitz.com launch, AA.com booking engine project, Orbitz Merchant Hotel CRS, Dynamic Packaging, Attractions & Services, Merchandising and Yield Management systems. Roger has over 10 years of software architecture and management experience ranging from high volume web sites while at Neoglyphics to cellular handsets while at Motorola.