Galileo Airline Reservation System To Cease Operations in Argentina


The Galileo airline reservation system is to cease operations in Argentina on 30 June. The company, which is owned by U.S.-based Cendant Corp, cited financial and marketing reasons for pulling out of the Argentine market.

Galileo
plans to shut down operations on expiration of the contract under which the company uses the infrastructure of U.S.-based United Airlines in Argentina, Chile, Uruguay, Costa Rica and Guatemala.


The company did not comment on the announcement, although U.S. executives told the Infobae online daily that they planned to concentrate on operations in Mexico and Brazil.


The airline reservation system, which booked 16.5% of tickets sold in the South American country, has 250 customers in Argentina, including airlines and travel agents.


The system`s main competitors are Amadeus
, with 53% of travel agent bookings, Sabre, with 27% of the market, and Worldspan, which entered the Argentine market recently and has 2.5% of the market.

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Total revenue for these four companies in 2002 was some $25 million, a 24% decrease over 2001.

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