US Airways to take on Sabre

US Airways to take on Sabre

US Airways has confirmed it will sue Sabre Holdings, arguing the operator of reservations systems shuts out competition to protect monopoly pricing power.

The airline is the latest to tackle the global airline distribution system, stating the fees paid to third party distributors are too high.

US Airways signed a new contract with Sabre last month.

The lawsuit filed in New York on says 35 per cent of its revenue is booked through Sabre, and that losing that revenue would probably force it into bankruptcy.

American Airlines had sued Sabre, too, but the litigation is on hold until June 1st as they try to reach an agreement.

Last week American sued online travel company Orbitz Worldwide over commissions.

Sabre said it would aggressively defend its position.

“We intend to aggressively defend against US Airways’ lawsuit, pursue our own legal rights and take appropriate action to protect consumers’ right to a transparent marketplace,” Sabre said in a statement. 

Sabre is owned by private-equity companies Silver Lake and TPG.