Amadeus buys low-cost airline solutions provider Navitaire

Global travel industry solutions provider Amadeus will buy the Navitaire airline and rail company technology firm from management consultant Accenture, in a deal worth US$830 million (A$1.1 billion).

Navitaire focuses on budget airlines, and counts 50 carriers around the world as customers, providing products such as reservations systems, loyalty programs, data analysis, and accounting solutions.

In Australia, Qantas and its Jetstar subsidiary are Navitaire customers.

Ben Hunt, group communications director at Amadeus, told iTnews the acquisition particularly enhances the company's presence in Asia Pacific and Australia, as Navitaire has a strong customer base in that region.

"Where Amadeus has been strong in the full service carrier market, Navitaire is very strong in the low cost carrier market, which is becoming increasingly significant in Asia Pacific," Hunt said.

Amadeus intends to keep Navitaire separate from its Altéa suite of products. Some 550 Navitaire employees will transfer to Amadeus as part of the deal.

"Our two platforms will continue to serve these two markets, meaning that overall Amadeus will have a portfolio serving the full range of airlines and support the growth of aviation in this key region," Hunt said.

The deal is subject to regulatory approvals and Amadeus and Accenture expect it to close towards the end of the year.

Amadeus and Accenture have also struck a separate agreement under which the latter company will act as a strategic partner for the former's airline IT business.

Accenture will provide management and technology consulting, systems integration, business process outsourcing and other digital services to complement Amadeus' existing suite of offerings.