The major computer reservations systems that have developed were (in most cases) examples of joint ventures. The major world-wide systems now generally termed Global Distributions Systems (GDS) enable automated transactions between vendors and booking agents to provide travel-related services to the end consumers. The major GDS operators are:

• Sabre
• Amadeus
• Worldspan
• Galileo

Sabre, based in Dallas, Texas, owes its origins to American Airlines which developed the system until it was sold by the airline in 2000. The three other major GDS systems were all developed by consortia of airlines which traded as separate joint-venture companies until they were sold by their respective airlines.

Worldspan and Galileo, although they both continues to trade separately, are part of the TravelPort corporation based in Atlanta, Georgia. Worldspan was developed by Delta Airlines, Northwest Airlines (now merged with Delta) and the now defunct TWA. Galileo was operated as a joint venture between a number of European airlines including British Airways, KLM and Aer Lingus. Amadeus, based in Madrid, Spain, was developed and operated by another joint venture company owned by a consortium of European airlines including Air France, Lufthansa, SAS and Iberia until it became an independent company in 2005.

There are also a number of smaller, more regionalised GDS providers including Abacus. The company, which is based in Singapore, unlike the global suppliers outlines above, continues to operate as a joint venture company. It is owned by a consortium of leading Asian airlines including All Nippon Airways, Cathay Pacific, China Airlines, Eva Airways, Garuda Indonesia, Philippine Airlines, Malaysia Airlines, Royal Brunei Airlines, and Singapore Airlines.

In addition to GDS suppliers there are hundreds of Alternative Distribution System (ADS) channels that are operating. These can be viewed as 'hybrid distribution' mechanisms as they provide web-based visibility while gaining their information from the major GDS systems. These suppliers include well-known names such as Travelocity, Expedia, and e-Bookers and Opodo.

(a) What are some of the reasons that joint ventures have been a favoured method for developing GDS systems?

(b) What competitive threats might affect further growth of GDS and how might the major companies respond