US Airways Files Antitrust Lawsuit Against Sabre
- Thread starter JayBrian
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I think most people would agree that airlines themselves are some of the most anticompetitive and collusive organizations out there. Also funny to see this quote: "and maintain its technologically-obsolete business model." I realize they are speaking purely of the way it does business and not it's products. It made me chuckle none the less considering who we are talking about that filed the lawsuit.
A320 Driver
Veteran
The shares migration was a disaster no doubt, but this is a move I have to support. I wish we would/could develop our own system (maybe using Pacer as a base) and free ourselves of Sabre all together. Technology and innovation have left Sabre in the dirt...time for us to move on.
Just my opinion.
Driver B)
I wonder where we would be if US had spent the money to improve and make PACER y2k compliant instead of shoveling money to sabre. Above my head.
Dog Wonder
Veteran
WorldTraveler
Corn Field
- Dec 5, 2003
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I'm not sure trhat US' choice of an internal res system has anything to do with the Sabre CRS/GDS complaint although there probably is some validity to what has been said about the internal migration.
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US is following in AA's footsteps but you have to wonder what kind of legal ground they have to stand on by signing the contract and then later saying they had to choice but to sign and be extorted by Sabre.
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They obviously did have the choice not to sign, file the lawsuit, and then let their negotiations play out in front of a judge who can then decide if it was anticompetitive on Sabre's part. Or they could have had a term sheet from Sabre, taken it to court, and showed that was the best they could get - but not sign it.
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US is following in AA's footsteps but you have to wonder what kind of legal ground they have to stand on by signing the contract and then later saying they had to choice but to sign and be extorted by Sabre.
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They obviously did have the choice not to sign, file the lawsuit, and then let their negotiations play out in front of a judge who can then decide if it was anticompetitive on Sabre's part. Or they could have had a term sheet from Sabre, taken it to court, and showed that was the best they could get - but not sign it.
So it is your belief that the internal res system QIK/SHARES has nothing to do with Sabre and the money throw at it to make it work
WorldTraveler
Corn Field
- Dec 5, 2003
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not saying that... just that the CRS/GDS decision is not related to US' internal res system.
It doesn't hurt Sabre that US is giving them money for ANYTHING but the lines of business are quite different.
http://www.star-telegram.com/2011/04/21/3019096/sabre-faces-antitrust-suit-from.html#ixzz1KDfFkrqo
At issue are the fees American and other airlines pay the big travel reservation systems, called global distribution systems, to display flights and make bookings. American wants more travel services, such as travel agencies and travel websites, to connect directly to its own reservations system.
About $3.5 billion, or 35 percent, of US Airways' ticket revenue is booked through Sabre, the carrier said.
n US Airways' suit, filed in federal court in New York, the carrier said that if it lost the revenue booked through Sabre it "would likely be forced into bankruptcy." It said "the result of Sabre's conduct has been a massive distortion of competition that harms consumer and airline welfare through higher prices, lower quantity, less choice, and reduced innovation relative to what would have existed if Sabre had not foreclosed competition on the merits."
At issue are the fees American and other airlines pay the big travel reservation systems, called global distribution systems, to display flights and make bookings. American wants more travel services, such as travel agencies and travel websites, to connect directly to its own reservations system.
About $3.5 billion, or 35 percent, of US Airways' ticket revenue is booked through Sabre, the carrier said.
n US Airways' suit, filed in federal court in New York, the carrier said that if it lost the revenue booked through Sabre it "would likely be forced into bankruptcy." It said "the result of Sabre's conduct has been a massive distortion of competition that harms consumer and airline welfare through higher prices, lower quantity, less choice, and reduced innovation relative to what would have existed if Sabre had not foreclosed competition on the merits."
BoeingBoy
Veteran
- Nov 9, 2003
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John John, those booking fees to Shares the GDS would be paid whether US used Shares or Sabre's res system internally. As you'll notice from the article, American uses the Sabre res system but still pays the booking fees. In fact AMR sued Sabre the GDS back in January over the same issue.
Jim
Jim
Sabre, provides schedule and fare data to US Airways for a fee I get it. The agreement must SUX because the information is in small amount.
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