Amadeus has moved to increase liquidity and cut costs as the COVID-19 pandemic decimates air bookings globally.

The leading European airline distribution system says the combination of cancellations and country lockdowns has “had a severe impact on the global airline industry”.

With both bookings and passengers boarded impacted, Amadeus said is taking measures to protect its financial position.

This will enhance its financial flexibility and support cash generation “in a scenario where the current tough market conditions persist over a long period of time”, Amadeus said.

Measures being taken include:

• Securing incremental €1,000 million of liquidity, adding to existing liquidity including a €1,000 million undrawn revolving credit facility and €660 million of cash;
• Cancellation of a complementary dividend payment of €320 million scheduled for the general shareholders’ meeting of June 2020;
• Efficiency measures to reduce fixed costs and capex by an “approximate annual run-rate of €300 million” to be continuously re-evaluated over the coming quarters.

Amadeus extends and strengthens its strategic partnership with Arrive Agencies, which aims to develop the business and offer innovative solutions for travel agency chains and independent travel agencies in Scandinavia. According to the Global Business Travel Association, business travel will increase in the years to come. However, to secure a place in the ecosystem, it is not enough for business travel agencies to have good customer relationships. Travel needs are becoming increasingly complex, and customers are demanding more advanced digital solutions and a wider range of travel and accommodation options. Travel must also be in accordance with the companies’ travel rules and guidelines. Against this background, Amadeus and Arrive Agencies have entered into a comprehensive five-year agreement involving the implementation of several of Amadeus’ solutions. Arrive Agencies will be able to use Amadeus’ NDC-enabled solutions, including Selling Platform Connect, Travel API and Value Hotels, with access to the market’s most comprehensive travel agency network through Live Travel Space. “Amadeus is an incredibly important partner for us,” says Annika Hultgren, Managing Director of Arrive Agencies. Our customers are travel agents with local roots and a strong local brand. of travel services, it is important that we have strong and long-term agreements – and that we have got with Amadeus. The expanded cooperation will focus on both system and technical functionality, as well as on longer-term business goals and improved services. For business travel agencies, efficient processes and automation are both a prerequisite for and a supplement to good customer relations in view of the squeezed margins in the business travel segment. “As the travel industry has become more complex, Arrive Agencies has identified a great need for travel agencies in Scandinavia,” says Ulla Persson, Country Manager at Amadeus Scandinavia. which creates great added value for these customers. It is also important that business travel agencies continue to strengthen competitiveness by adapting to the needs of travelers. Access to the wide range of services in Amadeus Live Travel Space allows Arrive Agencies’ partners to offer travelers exactly the solution they want, when they want it. It strengthens the offerings of business travel agencies and meets an increasingly differentiated needs of both today’s and tomorrow’s global travelers.

Amadeus said: “Our aim is to be well prepared to face a tough business context. The initial recovery China is experiencing today may set a reference for the future of other regions in the world.

“We will closely monitor this evolution and carefully manage our cash position over the next twelve months.”