Amadeus IT Holding SA (AMS.MC) on Friday joined the barrage of criticism from travel intermediaries aimed at industry changes spearheaded by American Airlines, and said it was "actively reviewing" its contracts with U.S. carriers.

The Madrid-based company runs one of the largest global distribution systems, or GDS, linking travel agents and online ticket sellers to airlines. Its stance follows criticism of the airline from rivals Travelport and Sabre Travel, part of an escalating battle between the two sectors.

"We are actively reviewing our U.S. airline content agreements," said an Amadeus official in a statement.

"Should any development occur that breaches these agreements, Amadeus will take the actions we feel appropriate and in the best interest of our customers and our business."

Amadeus didn't comment directly on the spat that has seen American's fares and schedules dropped by Sabre and Expedia Inc. (EXPE), the largest U.S. online travel agent, after the airline pulled its inventory from Orbitz Worldwide Inc. (OWW).

However, Amadeus criticized the efforts to change ticket distribution that is being led by American, a unit of AMR Corp. (AMR).

American executives have said they are committed to requiring all external sellers to access its fares and schedules through an electronic link--or direct-connect--rather than through the GDS operators that still dominate the airline ticket market, especially for corporate travel.

The third-largest U.S. airline said the system allows it to be more responsive to traveler needs, but wants to remain partners with GDS providers and is in contract renewal talks with the main providers. The direct connect system would also allow the carrier to cut costs and allow it to boost revenue from selling "unbundled" products such as assigned seating.

Amadeus and rivals charge airlines for the ticket sales they facilitate, often passing on part of the charge as a commission to travel agents.

"The 'direct connect' model only promotes fragmentation, raises costs, and creates inefficiencies across the travel industry distribution chain," said Amadeus in a statement issued to travel agent customers late Thursday. "And for travelers, a direct connect approach will result in higher fares, fewer options, and the elimination of true transparency in their air travel."

The GDS providers' contracts with most U.S. carriers expire over the next 18 months.

"In terms of airline content, Amadeus has content agreements in place with carriers worldwide (including major U.S. airlines) and plans to continue to do so in the future," the company said.

-By Doug Cameron, Dow Jones Newswires; 312-750-4135; doug.cameron@dowjones.com
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