April 24, 2011 - US Airways filed a federal civil antitrust lawsuit in the Southern District of New York against Sabre Holdings Corp. to halt anticompetitive and anticonsumer practices, as well as recover monetary damages.  

According to the complaint, Sabre, which is a dominant distributor of airline fares and content to travel agents, 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.

The complaint also alleges that Sabre has been aggressive in suppressing the ability of travel agents to book tickets directly with airlines using so-called "direct connections." US Airways pays Sabre so that Sabre affiliated travel agents can book tickets on US Airways. Across the board there have been advances in technology and communications, and a corresponding decline in those costs, yet the cost of doing business with Sabre remains artificially inflated.  

"The airline industry and other technology services providers have become more efficient, yet Sabre's conduct has enabled it to charge inflated prices with outdated technology that was developed before the Internet existed. Lower-cost, more technologically-advanced alternatives and innovative fare products are being shut out by Sabre's actions," said US Airways President Scott Kirby. "US Airways wants to be able to widely distribute its products and services to consumers in a cost-effective and efficient way, but Sabre continues to erect roadblocks to this goal. US Airways and travelers would see enormous benefits if Sabre had to compete on a level playing field," said Kirby.