A federal jury in New York on Tuesday ruled in favor of American Airlines in its suit against Sabre, awarding the airline $5.1 million in damages after agreeing that the global distribution system had violated the Sherman Antitrust Act in a 2011 contract with US Airways.
American acquired US Airways in 2013.
The damages are automatically tripled by law.
The original lawsuit alleged that Sabre violated antitrust laws by preventing US Airways from offering its airfares to travel agents through more direct means, and from prohibiting the airline from offering discounted fares to consumers on its own website.
"We have long contended that the contractual provisions at issue - provisions that Sabre has made a condition to participate in its global distribution system - have reinforced Sabre's market power, stymied competition, and harmed us and the travelers we serve," American said in a statement. "Now that the jury has agreed with us, we hope to see changes in the way our services are sold, and we expect technology and innovation will create even better and more transparent ways for us to distribute our products."
Ironically, American settled a separate lawsuit against Sabre in 2012 in which it alleged the same antitrust violations.
Sabre plans to appeal.
"The jury sorted through a complicated case that involved hypothetical economic theories, intricate technology discussions, and months of testimony. We continue to believe we operated fairly and lawfully in an extremely competitive marketplace as Sabre provides efficient distribution, innovative technology and transparency that benefits suppliers, travel agents and consumers alike," the company said in a statement. "We will continue to defend the interests of consumers who seek transparent and efficient shopping, booking and servicing of travel; we therefore expect to file a motion to set aside the verdict immediately, which would award $5.1 million in single damages to US Airways. To the extent the Court declines to grant the motion to set aside the verdict, we will pursue an appeal. Sabre believes it acted lawfully and fairly, and we do not anticipate any impact to existing offerings. In the meantime, we will continue to work with American Airlines, focusing our efforts on helping them drive business success with smart technology."
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