US Airways files antitrust suit against Sabre
US Airways filed (21-Apr-2011) a federal civil antitrust lawsuit in the Southern District of New York against Sabre Holdings Corp, aimed at halting “anticompetitive and anticonsumer practices”, as well as recovering monetary damages. According to the complaint, Sabre “has engaged in a pattern of exclusionary conduct to shut out competition, protect its monopoly pricing power, and maintain its technologically-obsolete business model”. US Airways contends that Sabre has wielded its significant market power and control through exclusionary commitments from travel agents and other Global Distribution Systems (GDSs), as well as through anticompetitive requirements placed on US Airways and other airlines in order to sell their tickets. Over 35% of US Airways' revenue is booked through Sabre and Sabre affiliated travel agents.
US Airways: "Sabre has had a monopoly for years and has used that monopoly as leverage over us. The only way Sabre is going to change their behaviour is through an antitrust lawsuit," President, Scott Kirby. Source: Reuters, 25-Apr-2011.