Tag Archives: US Airways v. Sabre

Airline-GDS Negotiations Heat Up As Parties Try To Sway Lawsuit’s Outcome

[UPDATE, May 26, 2017: IAG informed industry partners that British Airways and Iberia would add a $10 fee as of Nov. 1, essentially for each one-way trip, on tickets purchased in global distribution systems. The fee will be displayed as a “Q charge” in fare constructions, and included in itinerary fare quotes. Refunds will align with the rules of the… Read More »

Jury Finds Sabre’s US Airways Contract Violated Antitrust Law

[UPDATE, March 22, 2017: U.S. District Judge Lorna Schofield denied Sabre’s motion to set aside the verdict against it. She cited case law explaining that such a motion can be granted “only if there exists such a complete absence of evidence supporting the verdict that the jury’s findings could only have been the result of sheer surmise and… Read More »

Jury Won’t Hear Sabre Argument That US Airways Lured It Into Lawsuit

The US Airways v. Sabre antitrust case now is in the jury’s hands. The evidence it’s considering does not include everything Sabre wanted it to know. Most notably, the jury didn’t hear about Sabre’s claim that US Airways pursued a “sign-and-sue” strategy. According to the argument, US Airways baited Sabre into rejecting a last-minute request for a deal… Read More »

Defense Rests After Witnesses Rebut US Airways Account Of Sabre’s Strong-Arming

New York – In its lawsuit against Sabre, American Airlines contends that US Airways in 2011 had “no choice” but to accept purportedly onerous terms for participating in the global distribution system. Witnesses for the airline alleged that Sabre insisted on a contract for full content, or else US Airways risked being out of the system altogether. The… Read More »

Murphy’s Law: Economist For Sabre Counters American Airlines’ Expert

New York – University of Chicago professor Kevin Murphy is an award-winning economist. His most prestigious honor is the John Bates Clark medal, won in 1997. For economics, it’s up there with the Nobel Prize. Murphy testified last week in the US Airways v. Sabre trial here, dueling with a winner of that other award, Joseph Stiglitz. Stiglitz… Read More »

Case Details Alternative Air Distribution Models

New York — Airline-GDS relationships are often contentious, putting corporate clients and travel management companies in the middle. Why hasn’t anyone considered blowing up the model? They have. Evidence and testimony in the US Airways v. Sabre trial here showed that Sabre, for one, has thought about a number of alternatives to airline segment fee remuneration. At least… Read More »

‘Seriously, Keep This To Yourself, Tell No One’

New York — U.S. District Judge Lorna Schofield in October told the jury in the US Airways v. Sabre trial here that to prove conspiracy, the plaintiffs must demonstrate Sabre knowingly entered into an agreement not to compete which unreasonably restrained trade and caused injury. In the ensuing weeks, American Airlines attorneys produced several pieces of evidence to… Read More »

Big Four Got About One-Third Of Total Sabre Incentives

New York — Sabre in 2011 paid a total of $647 million in travel agency incentives, according to evidence in the US Airways v. Sabre trial here. About one-third of that went to four big corporate agencies — American Express Global Business Travel, BCD Travel, Carlson Wagonlit Travel and HRG. Newly revealed evidence shows specific totals for CWT and… Read More »

As His Company Sued Sabre, Doug Parker Claimed Scant Knowledge About Travel Agencies

New York — Doug Parker is chairman and CEO of American Airlines, which continued the lawsuit against Sabre that his previous company, US Airways, filed more than five years ago. Two months after announcing a merger with American, Parker in an April 2013 taped deposition admitted to a remarkable lack of knowledge about the sales and distribution ends… Read More »

Why It’s Difficult To Update Travel Agent Desktops

New York — It’s easy to make fun of the traditional “green” screens that travel agents use, but it’s really hard to replace them. Executives with large travel management companies deposed for the US Airways v. Sabre lawsuit, now in trial here, pointed to tens of millions of reasons. “It was a money pit,” said BCD Travel EVP Rose… Read More »