Alternative GDS, G2 SwitchWorks responds to ASTA claims
G2 SwitchWorks Corp. takes issue with the American Society of Travel Agents’ (ASTA) concerns over G2’s technology and control by airlines.
Alex Zoghlin, G2 SwitchWorks Corp’s founder and CEO responded this week to ASTA’s filing with the Department of Justice (see related article), saying “…we were disappointed to be the subject of baseless claims by the American Society of Travel Agents (ASTA). It is further disappointing to note that ASTA never contacted G2 to learn the facts about our business before making their uninformed statements.”
Founded in April of 2004, G2 was funded, owned and controlled by Mr. Zoghlin and a few individuals until January 2005 when G2 obtained venture financing from Norwest Venture Partners and TPG Ventures. According to G2, the majority of equity and voting interests in G2 continue to be held by Mr. Zoghlin and G2 employees.
According to G2 it was not founded, nor is it funded or controlled by any individual airline or collection of airlines. Several airlines that have agreed to pre-pay G2 for distributing tickets will receive the opportunity to hold a very small collective equity stake in G2 and will not receive, individually or in the aggregate, the ability to designate any member or members to G2’s Board of Directors or otherwise direct G2’s strategic planning or day-to-day operations.
G2 does represent the first real competition that the GDS have ever faced after enjoying decades of control over travel booking distribution. G2 believes the GDS have shown that they will stop at nothing to prevent them from gaining traction in the marketplace, which includes spreading fear and misinformation. G2 believes the marketplace will decide on the best solution and encourages all players in the industry to seek new levels of innovation for our nation’s travel sellers while helping our airline suppliers cut costs where possible.
Specific to claims made by ASTA, G2 says it does, fully integrate and interact with mid and back office automated accounting and reporting systems used by most agencies today. Moreover, G2 has agreements and letters of intent with over a dozen airlines, including several that either have limited or no participation in any global distribution system.
Charles Kao
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