Amadeus expands LCC offering

Abstract background in a concept of optical fiber. Clipping path included.

Amadeus will make significant inroads into the low-cost segment of the airline industry with its latest acquisition, according to the technology provider.

The US$830 million acquisition of Navitaire from Accenture will complement its own strengths in the full service carrier market, an Amadeus spokesperson told Travel Weekly.

In addition, Navitaire’s “healthy presence” in Australia and the wider Asia Pacific region would build upon its own customer base.

“Where Amadeus has been strong in the Full Service Carrier market, Navitaire is very strong in the low cost carrier market, which is becoming increasingly significant in Asia Pacific,” the spokesperson said.

The deal comes as the aviation industry becomes increasingly complex, according to Amadeus president and chief executive Luis Maroto. He identified a growing cross-over between low-cost and full-service carriers.

“The combination of the technology and expertise of Amadeus and Navitaire ensures we are better positioned to meet the needs of all our customers,” he said.

Navitaire will become a distinct business line within Amadeus’ Airline IT unit with current chief executive David Evans retaining that position. It will be called “Navitaire, an Amadeus company” from now on.

Amadeus confirmed that it intends to market and sell the two product portfolios separately and will continue to invest in both platforms.

Image credit: iStock

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