Google Acquiring Flight Info Provider ITA Software

July 2nd, 2010 at 10:20 am
 


It seems that Google is trying to become everything. When it started as an online search company, that was all that Google was known for then. But fast forward into the resent and you find Google as a company that tries to get its hands into almost everything encompassing several industry sectors.

Google has delved into various things other than merely online search. It has since developed its own open source OS for both PC’s and mobile phones. It has also invested into the green energy sector, health and even in emerging technologies. And now Google may set its sights on the airline travel sector with the recent purchase of ITA Software.

Online search giant Google has recently purchased airline IT and services provider ITA Software for a reported US$700 million.

ITA Software is known to be an important provider of flight information to airlines, travel agencies and used on online reservation systems. With almost half of ticket sales now made online, such information has become quite an important aspect of online search. This may have been one of the main reasons why Google decided to purchase ITA.

Google may have planned on further upgrading its search features when it comes to airline travel. The purchase of ITA software may be related to upgrading their online search features which Google has been known for. But there seems to be certain opposition regarding Google’s new acquisition and it comes from some companies that have already been doing business in the air travel industry.

Since ITA deals with providing flight information services to those businesses who require it, some of them believe that it remain a service that should not be left on Google’s hands. It might make life for online travel sites a bit more complicated. Even Microsoft depended on ITA for providing important flight information that it uses on its Bing search engine. And with Google now about to own ITA, there will be certain complications indeed. In fact, Microsoft and other online travel sites such as Expedia, Kayak and Orbitz have banded together into a consortium to try and counter Google’s offer for ITA but to no avail. Next in line may be government regulators trying to look into the new Google-ITA deal to determine whether it may be developing some unfair competition within the market, just like what it did to Google’s acquisition of AdMob.

 

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