Jury sides with US Airways against Sabre in GDS antitrust trial of the century - Tnooz - 0 views
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The jury has returned its verdict in US Airways’s $134 million antitrust lawsuit against travel technology giant Sabre.
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The airline’s lawyers successfully argued that Sabre had threatened it, saying that it had to accept a contract on Sabre’s terms or else be cut off from a network of thousands of travel agents worldwide who depend on the inventory that the tech giant provides via desktop software.
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During contract negotiations, Sabre never offered a deal for less than full-content, the airline said. Full-content contracts typically require an airline to provide the same fares it offers via any other channel, such as its own website, to Sabre, too.
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The role of GDSs in the travel industry has a major impact on revenue, competition, and reservations. In this article, Sabre, one of the largest known GDSs was sued by US Airways for failing to provide a fair contract to the airline. The lawyers from US Airways claimed that Sabre threatened to "cut off the airlines from a network of thousands of travel agents worldwide who depend on inventory that the tech giant provides via desktop software". The jury concluded that Sabre indeed violated antitrust law. Sabre, apparently, charged US Airways increased fees though their cost per transaction decreased because of the advances in technology. According to the article, Sabre argued that the fees were justified relative to the cost that an airline would incur to distribute its fares by other methods. This helped the agents have access to a plethora of information regarding price comparison. In my opinion, this is just a messy situation. However, it goes to show how important and how much of an impact that GDSs have on airline companies. They determine what consumers or agents readily see on the site. They determine how much of a presence a company has. The GDSs provide company information to a worldwide network that markets to consumers. Having a GDS system hold back or increase fees has proved to be detrimental. Ethical issues have come into play. The fact cannot be ignored that the technology being used by Sabre is helping lower cost for transactions. This decrease in cost should have resulted in a decrease in fees for the airlines. Nevertheless, the key to this article is that GDSs have the power (though Sabre did illegally) to determine which avenue a company goes through in regards to apparent competition and markets. The advancement of GDSs is resulting in lower cost transactions and giving agents and consumers "more bang for their buck". So it is important that the relationship between GDSs and airline companies remain ethical in all ways, especially dealing with