Southwest Airlines and Amadeus announced that they entered into a contract for Amadeus’ Altea reservations solution to support the carrier’s international service.  The two companies will work closely together to implement Amadeus’ technology to allow Southwest to operate international flights in 2014. AirTran, the wholly-owned subsidiary of Southwest , currently serves a few international destinations.  As the AirTran international flights transition to Southwest, Amadeus will support Southwest’s international flying.

There are a few items from this news worth considering.  Te first is that SABRE got dumped it seems.  Up to now many observers had been of the view that SABRE would hold on to their Southwest work. Now it looks like Amadeus has moved into a premier spot with Southwest.   That has to have upset a few people in the Dallas.

Then there is the other issue – the USA is now officially too small for Southwest.  The market has seen LCCs run into each other with only blood to show for it. Airlines are competing more cleverly now; less blood. But the market has not grown.  What to do with the planes and people? Well, go over the border.  Southwest has a deal with Volaris in Mexico. Which means AeroMexico is going to see some competition. Canada is open season. WestJet can deal with this. But Air Canada? Let the fun begin.  It won't be long before the competition stretches as far as a 737-800 can fly. Which means US legacy carriers can't be too happy either.