Yesterday in New York City, an 11-person jury determined that Sabre, through certain provisions in the Sabre/USAir contract, violated U.S. antitrust law and found those provisions harmed competition. The jury awarded USAir/AA a little over $5 million, which will be trebled to $15 million due to the case being an antitrust case, plus attorney’s fees. However, the money was never the real issue in this case.
The real issue was the jury determined that certain provisions found in most GDS/airline distribution agreements were anti-competitive. These provisions, generally grouped together and labeled as “full content provisions”, include a full-content provision, a content-parity provision, a surcharge prohibition provision and a direct-connect prohibition provision.
The impact of this decision should make it much easier for airlines to offer competitive content, generate more competition among GDSs and pave the way for much needed competition and innovation in the airline distribution market.
Farelogix applauds the jury’s finding and looks forward to a more open, transparent and innovative distribution market.