US Airways sues Sabre, escalating the airline distribution war

With the revelations from American Airlines' earnings call as well as lawsuits, especially that filed against Sabre by US Airways on 21-Apr-2011, it may only be a matter of time before the great distribution battle is settled once and for all in the airlines' favour. After all, the deals that have been cut by US Airways and American favour the direct connect strategy. Even so, those deals have largely between between the airlines and online travel agencies. The big test is now between airlines and global distribution systems. US Airways' move will only accelerate the industry-wide battle, with potentially wide-ranging repercussions. Although the conflict has so far been contained in the US, its principles will be watched closely by industry and regulators alike all around the world. The key issue is whether the airline industry can evolve from a mode of transportation to a retail business.