02:27 (GMT +7) - Wednesday 20/03/2019

Business

Vietnam Airlines expands relationship with Sabre

Released at: 16:48, 01/03/2019

Vietnam Airlines expands relationship with Sabre

Photo: Vietnam Airlines

$300-million agreement adds to existing cooperation between two industry leaders.

by Doanh Doanh

Vietnam Airlines and the Sabre Corporation, the leading technology provider to the global travel industry, signed of a memorandum of understanding (MoU) on February 27, witnessed by General Secretary of the Communist Party of Vietnam and State President Nguyen Phu Trong and US President Donald Trump at the Presidential Palace in Hanoi.

The MoU describes Vietnam Airlines’ intention to significantly expand is existing strategic relationship with Sabre, with a potential value of over $300 million. The scope of the MoU includes innovative technology from the Sabre AirVision and AirCenter portfolio that will complement SabreSonic, Vietnam Airlines’ existing Passenger Service System (PSS), which was recently renewed. Together, Sabre’s solutions will help contribute to the carrier’s profitability and digital abilities, supporting their objective to become a digital airline by 2020.

Sabre’s innovative Sabre In-Flight solution will be the first adopted by the airline. The solution, which has driven cost savings of up to 10 per cent of the total catering budget, will also enhance the airlines’ operational efficiency. The MoU also includes a new, long-term domestic content distribution agreement for Vietnam Airlines through the Sabre Global Distribution System (GDS).

A growing domestic subsidiary of Vietnam Airlines will also onboard SabreSonic PSS under the MoU, in an effort to enhance the synergy within the group. The deal, which is expected in the coming months, will provide a single integrated passenger technology platform across both carriers.

“Vietnam Airlines is pleased to build on the existing agreement with Sabre, our trusted, long-term technology provider, to include advanced solutions that will propel our business into the future,” said Mr. Duong Tri Thanh, President and CEO of Vietnam Airlines. “Our Digital Transformation program is essential to our continued success and onboarding these solutions from Sabre directly supports our efforts to achieve Skytrax five-star status. We are well-prepared for Industry 4.0 and will soon embark on the ultimate digital journey, providing a seamless customer experience and improved operational efficiency.”

“This announcement reaffirms our role as a strategic technology provider to one of the region’s leading carriers, Vietnam Airlines,” said Mr. Dave Shirk, President, Travel Solutions, at Sabre. “Over the last year, our alliance has evolved both on the content distribution and airline solutions front and we look forward to working with the carrier to provide a holistic approach to retailing, distribution, and fulfillment.”

The announcement comes within a year of Sabre and Vietnam Airlines announcing an extended agreement for SabreSonic valued at over $400 million, and the renewal of a long-term content distribution agreement through the Sabre Global Distribution System. The MoU expands the relationship between the two industry leaders and further strengthens the results-driven alliance that has developed between them for more than 20 years.

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