Iberia to cut its 130 million Euro GDS bill

Iberia Lineas Aereas de Espana SA has indicated that it plans to work on measures to cut its 130 million Euro annual payments to GDS ticket reservation companies.

According to AFX News, the spokeswoman said that cutting its payments to GDS is part of the flag carrier’s 2006-2008 strategic plan which aims at a wide range of cost-cutting measures with all suppliers. As per the report, she noted that cost-cutting measures will be `discussed in the normal conversations between between Iberia and its reservations centres.’

The report added that Iberia plans to renegotiate the contracts currently in force with the GDS next year. Iberia has an 11.4 pct in Amadeus Global Travel Distribution SA, which in turn controls 89 pct of the Spanish airline reservations market. Galileo has an 8 pct market share, added the report.