Search Travel Market Report

mainlogo
www.travelmarketreport.com
U.S.A.
English
Canada
English
Canada Quebec
Français
Menu
  • News
  • Packaged Travel
  • Cruise
  • Hotels & Resorts
  • Destinations
  • Retail Strategies
  • Air
  • Training & Resources
  • Luxury Travel Report

US Airways Triumphs In Antitrust Lawsuit Against Sabre

by Michele McDonald  December 21, 2016

The jury that heard US Airways’ antitrust lawsuit against Sabre found that the GDS company violated antitrust law with its “full-content” contract provisions, thereby unreasonably restraining trade.

Full-content clauses have become the norm in many GDS-airline contracts; they require airlines to provide all their published fares, including those published only in their own channels, to the GDS. In general, failure to provide full content would result in much higher segment fees.

The crux of US Airways’ case was that the clause prevented the carrier from providing such information first to lower-cost distribution channels, such as web-based alternatives. Competition would be “clearly” enhanced if US Airways had that ability, the carrier claimed.

The jury awarded the airline $5.1 million in damages, which will be trebled by law. US Airways had sought $44 million in damages, but it was made clear by its conduct throughout the case that quashing the full-contract clause was more important than the money.

The jury found that US Airways did not provide sufficient evidence of another claim made in its lawsuit—that Sabre conspired with Amadeus and Travelport not to compete with each other for better terms from airlines on issues like fares or ancillary services.

It’s not clear whether the verdict on contract provisions will prove to be the victory that US Airways—now American Airlines, since the merger of the two carriers in 2013—had hoped for, both in this lawsuit and American’s lawsuit against Sabre and Travelport, which it settled in 2012.

The verdict does not affect other airlines’ contracts with GDS companies. However, it may cause GDS providers to consider the consequences of insisting on contract provisions that airlines have fought for years and that a jury has now found to be anticompetitive.

Sabre, meanwhile, plans to file a motion to set aside the verdict immediately.

“The jury sorted through a complicated case that involved hypothetical economic theories, intricate technology discussions and months of testimony,” it said in a statement. “We continue to believe we operated fairly and lawfully in an extremely competitive marketplace as Sabre provides efficient distribution, innovative technology and transparency that benefits suppliers, travel agents and consumers alike.”

If the court declines to grant its motion, Sabre said, it will pursue an appeal.

“Sabre believes it acted lawfully and fairly, and we do not anticipate any impact to existing offerings,” it said. “In the meantime, we will continue to work with American Airlines, focusing our efforts on helping them drive business success with smart technology.”

American said it was “very pleased” with the verdict. “We 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,” it said in a statement.

“Now that the jury has agreed with us, we hope to see changes in the way our services are sold, and we expect technology and innovation will create even better and more transparent ways for us to distribute our products.”

  0
  0
Related Articles
Five Future Luxury Travel Trends
In His First Earnings Call, Menke Outlines Sabre’s Future Path
US Airways Wins Antitrust Lawsuit Against Sabre
Sean Menke Named CEO Of Sabre Corp.
Will Jeff Katz Miss The Mark Again?
Sabre Provides An Early Look At Its New Agency Desktop
Sabre To Move Airline Availability To Amazon’s Cloud
J.D. Power Airline Customer Satisfaction Rates Hit 10-Year High
Sabre Enables Virtual Payments For More Products

MOST VIEWED

  1. Power Outage in Spain and Portugal Causes Major Travel Disruptions, Including at Madrid Airport
  2. 5 Things I Liked About Norwegian Aqua – and 4 I’m Not Sold On
  3. Testing the Waters with Dori: Do Travel Advisors Actually Dislike Viking?
  4. Beaches Ocho Rios Resort to Close Doors in May 2025
  5. How Pope Francis’ Funeral Will Impact Travel to Rome and Vatican City
  6. Using a Phone on a Cruise Ship Will Cost Thousands: Urban Myth or Reality?


  1. Travel Advisor Appreciation Month Offers Not to Be Missed
  2. TTC Tour Week Returns with 9 FAM Trips Scheduled for November
  3. Booking on Grandma’s Budget: How Grandparents Are Driving Multi-Gen and Skip-Gen Travel
  4. The Best Hotels to Book in Portugal & Spain: Roundup From an ALGV FAM 
  5. Vanessa McGovern Lands at Global Travel Collection
  6. Ask-an-Advisor: How Do I Strike the Right Balance Between My Budget Conscious Clients and Maximizing
TMR Subscription

Subscribe today to receive daily in-depth luxury coverage, analysis of luxury news, luxury trends and issues that affect how you do business. Subscribe now for free.

Subscribe to TMR

Top Stories
Hotel and Resort News and Notes for April 2025
Hotel and Resort News and Notes for April 2025

Spa treatments, food and beverage experiences, and more – here’s what’s new in the hotel scene this month.

Waldorf Astoria Hotels & Resorts to Make Texas Debut
Waldorf Astoria Hotels & Resorts to Make Texas Debut

The Hilton luxury brand has signed on Waldorf Astoria Texas Hill Country.

The Ritz-Carlton New York, NoMad Appoints New Sales and Marketing Director
The Ritz-Carlton New York, NoMad Appoints New Sales and Marketing Director

Rosy Merlino is The Ritz-Carlton New York, NoMad’s new director of sales and marketing.

Marriott Is Bringing a JW Marriott All-Inclusive Resort to Costa Rica
Marriott Is Bringing a JW Marriott All-Inclusive Resort to Costa Rica

JW Marriott Resort Costa Rica will launch as the brand’s first all-inclusive in the country.

What and How to Order at a Luxury Hotel Bar
What and How to Order at a Luxury Hotel Bar

For advisors new to the luxury space, knowing what to order at a high-end bar can be an unexpected but valuable skill.

Floating Bungalows Offer Private Luxury in the Florida Keys
Floating Bungalows Offer Private Luxury in the Florida Keys

Ombi has introduced floating bungalows for two in Key Largo.

TMR OUTLOOKS & WHITE PAPERS
View All
industry spotlight
https://img.youtube.com/vi/PoDL9BufWSo/0.jpg
How Collette Is Supporting Advisors with Tools This Appreciation Month
Advertiser's Voice
Sail Unique With Explora Journeys
About Travel Market Report Mission Meet the Team Advisory Board Advertise Syndication Guidelines
TMR Resources Calendar of Events Outlook/Whitepapers Previous Sponsored Articles Previous This Week Articles
Subscribe to TMR
Select Language
Do You Have an Idea Email
editor@travelmarketreport.com
Give Us a Call
1-(516) 730-3097
Drop Us a Note
Travel Market Report
71 Audrey Ave, Oyster Bay, NY 11771
© 2005 - 2025 Travel Market Report, an American Marketing Group Inc. Company All Rights Reserved | Terms and Conditions
Cookie Policy Privacy Policy Manage cookie preferences