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Navitaire - AirTran Airways Renews Agreement for Navitaire's Open Skies Reservation System

Analysis

AirTran Airways (NYSE: AAI) has signed a business process outsourcing

agreement for Navitaire's Open Skies hosted reservation system,

renewing services provided under an existing five-year contract. Terms of the agreement were not disclosed. 


Navitaire, a wholly owned Accenture (NYSE: ACN) BPO business, provides outsourced technology and business solutions to the airline industry. Its Open Skies system is an integrated Web-enabled reservation and inventory software suite that includes Internet, call center and airport departure control functionality.

A long-time Navitaire customer, AirTran Airways is one of the most successful and fastest-growing airlines in North America. In 2004, with continued double digit growth in both revenue and passenger volume, AirTran surpassed $1 billion in annual revenues.

"The Navitaire Open Skies system continues to develop new and innovative tools that help us manage our reservations, distribution and inventory systems as AirTran continues to grow," said Kevin Healy, vice president of planning for AirTran Airways. "The AirTran business model is based on low cost, quality service; Navitaire is a leader in developing new technology and cost effective systems which support AirTran Airways' low cost network. These highly effective systems allow AirTran to maintain our three Georgia call centers. With this new agreement we not only extend our strong relationship with Navitaire, we also have the opportunity to control our operating costs in this area in the coming years."

"We salute AirTran's success in this highly competitive market," said John Dabkowski, managing director of Navitaire. "Navitaire's industry-leading solutions are proven to help airline leaders like AirTran Airways achieve high-performance results and enable profitable growth."

AirTran Airways is a CAPA Member. For more information on the Centre for Asia Pacific Aviation's membership service, please click the icon below.

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