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BUZZ-IAG's Walsh watching how Lufthansa GDS charge plays out

Reuters - UK Focus

** British Airways-owner IAG is watching how moves by Lufthansa to introduce a fee on bookings via third-party systems (GDS) play out, its CEO says

** "Clearly distribution cost is an issue for the industry and you've seen initiatives from Lufthansa which I have to say I admire, it's going to be interesting to watch how that plays out," Willie Walsh tells analysts on Friday

** He says IAG has GDS deals in place that it will honour, although it is always looking for ways to lower distribution costs

** Lufthansa's CFO said on Thursday she expected other airlines to follow its strategy (RM (LSE: RM.L - news) : sarah.young.thomsonreuters.com@reuters.net; victoria.bryan.thomsonreuters.com@reuters.net)