In an online Legal Symposium presented by ASTA last week, Pestronk predicted a “2006-type outcome,” in which airlines will get a break on GDS fees and will stay in the GDS systems. That break will come at the expense of agencies, which either will receive lower net incentive payments or will be charged a higher full-content fee. Either way, “it’s another hit for agencies,” he said. Airlines deeply resent agency incentives, which they believe keep their segment fees artificially high. GDS companies aren’t fond of paying them, either, but feel compelled to continue them to maintain their shares of the agency market. Pestronk, who specializes in GDS contracts, described two other likely results. “Once they get a break on fees, the airlines will agree to sell ancillary products through the GDSs. And a small number of agencies will agree to use American’s Direct Connect, so American will proclaim partial victory.” Get the full story at Travel Market Report