Sabre Increases Pressure on American Airlines

Sabre, the world’s largest global distribution system (GDS), well known for its display of cheap fares, both cheap airplane tickets and cheap vacation packages, has made American Airlines fares harder to find on its U.S. displays and is accelerating the termination date of its current agreement with American. Sabre has taken these steps in reaction to American trying to impose its "Direct Connect strategy" which Sabre views as "a costly, unproven and unnecessary system that would make it harder and more costly" for travel companies to run their businesses.



Sabre has altered the order in which some of American Airlines flights appear in availability and shopping displays.



American Airlines claims "Sabre has taken a set of punitive actions against the airline and its customers, despite the fact that American has met all of its obligations and continues to work in good faith with Sabre. The actions, which include biasing its shopping displays, are anti-consumer, anti-competitive and harmful to its subscribing agents."



Sabre’s reaction is similar to Expedia’s response to American’s decision to no longer allow its fares to be displayed on Orbitz’s website. While Orbitz has no business relationship with either Sabre or Expedia, both companies readily realize that if American is successful in its fight with Orbitz then American, as well as other airlines, might well take the same actions against Expedia and Sabre.



Airlines generally view global distribution companies, such as Sabre, as obsolete middlemen who air costs. The Airlines pay the GDSs every time a traveler buys a ticket outside the airline’s own website. The GDS earns an average of $3.10 for each flight segment. A round trip ticket with a stop in each direction would have fees that would total $12.40.



Travel sellers, including Expedia and Cheapfares, support GDSs because they make it easier for travelers to compare fares. Without such services customers would have a harder time comparison shopping between airlines.



Travel experts regard the actions of American, Expedia, and Sabre as an all out war for the future of travelers who purchase airline tickets.