Canadian low-cost carrier WestJet will take a $30.6 million pre-tax write-down on the cancellation of its contract for the ambitious aiRES reservation system after spending more than two years and $30 million on the project. AiRES is a flagship product of Travelport, the former Cendant Group.
Travelport senior vice-president Flo Lugli says the delays were caused as WestJet changed its business model, moving away from the bare bones simplicity of a low-cost airline. "We think it's time for them to make some decisions on their business model and set some firm deadlines," she says.
Lugli adds Virgin America is using "exactly the same version" of aiRES and has experienced no major problems. Virgin America's model is "hardly a bare bones approach", she adds.
WestJet director of culture and communications Richard Bartrem responds: "It just wasn't doing the things we'd asked of them, and we weren't seeing the functionality we needed. We may have learned from the experience, but the most prudent step was to write it off."
But the two do not rule out doing business with each other again.
Source: Airline Business
