American Airlines (AA, Dallas/Fort Worth) has won an antitrust suit against Sabre Airline Solutions, with a federal jury awarding nearly USD5.1 million to the airline. Antitrust cases in the US are automatically tripled so Sabre is looking at a payout of nearly USD15.3 million.
The jury at the U.S. District Court (Southern District of New York) agreed with American Airlines, which filed in 2011 as US Airways (Phoenix Sky Harbor), that Sabre had used its strong industry position in travel reservation systems to charge unfair fees to airlines. It was able to leverage its substantial power to force airlines into unfavourable contracts. One provision forced the airline to provide all its airfare data to Sabre, preventing the sale of low-cost fares through US Airways’ own website.
Responding to the decision, American Airlines said in a statement that "[w]e have long contended that the contractual provisions at issue – provisions that Sabre has made a condition to participate in its global distribution system – have reinforced Sabre’s market power, stymied competition, and harmed us and the travelers we serve."
Sabre contended that it acted lawfully and fairly, and that if US Airways found the contract adverse it could have declined it. The airline, in its original complaint, said that 35% of its revenue came through Sabre bookings, and it risked bankruptcy if it did not agree to Sabre’s terms.
In the same case, the jury rejected the allegation that Sabre colluded with its competitors.
Sabre is a provider of travel technology that provides airline reservation systems. It is the largest Global Distribution System (GDS) in North America. In a press release responding to the finding, Sabre says that it plans to file a motion to set aside the verdict and pursue an appeal.
