Sabre Violated Antitrust Law in Contract With US Airways

A federal jury in the Southern District of New York found that global distribution system Sabre violated the Sherman Antitrust Act in a 2011 contract with US Airways.

American Airlines, which merged with US Airways in 2013, issued the following statement:

“We are very pleased with the jury’s decision and greatly appreciate the time and effort they expended during the course of this eight-week trial. 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. 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.”

The jury awarded US$5.1m, which by law will be trebled. The company will also be awarded its reasonable costs and attorneys’ fees. The verdict was the result of a lawsuit filed by US Airways in 2011 and focused on the US Airways contract with Sabre that expired in 2011. American settled a separate lawsuit against Sabre in 2012.

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Source: American Airlines Press Release

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