NEW YORK (CNN/Money) - Seven major airlines have signed on with G2 SwitchWorks Corp., an airline reservation system, as a measure to cut costs, the company said.

American Airlines, the world's largest, America West Airlines, Continental Airlines, Delta Air Lines, Northwest Airlines, United Airlines and US Airways have signed long-term commitments, G2 SwitchWorks said.

The firm, which has developed a reservation and management system and serves as a middleman between airlines and ticket sellers, said American and four other carriers had pre-paid distribution fees for millions of tickets and have been offered the chance to buy a minority stake in the company.

"Seven of the country's largest carriers opted to make G2 SwitchWorks a leading provider for alternative [Global Distribution System] services even when other providers exist in the industry," G2 founder and Chief Executive Officer Alex Zoghlin said.

G2 SwitchWorks, a privately-held company that was formed last year in Chicago, said the airlines agreed to distribute tickets through its TRUEconnect network, allowing them to save up to 81 percent in global distribution system fees.