A Tarrant County judge has blocked Sabre Holdings Corp from showing the rates of American Airlines following the dropping of the airlines from the network of Sabre Holdings Corp. Sabre Holdings Inc also planned to modify the way the fares are displayed to potential customers.
According to American, which is a part of AMR Corp (NYSE:AMR), Sabre Holdings Corp was breaching an agreement by putting the fares below making it difficult to get noticed by customers causing American Airlines to lose potential sales due to the action.
However, Sabre Holdings Corp is convinced the right of the company to safeguard the interests of its clients and allow transparency in selecting airlines will be upheld by the court.
Sabre Holdings Corp was purchased by TPG Capital and Silver Lake Partners in 2007 and runs the website Travelocity.com
A system was developed by AMR to notify customers of added features instead schedules and prices when they purchase tickets.
However the system upsets the procedure utilized by Sabre Holdings Corp as well as Orbitz Worldwide (NYSE:OWW) and Expedia Inc (NASDAQ:EXPE).
Sabre Holdings Corp, which comprises almost half of American ticket sales, was accused of increasing fees to make information available which will increase distribution expenses of the airline.
Sabre Holdings Corp is a worldwide distribution system which links travel agencies with flight and fare information.
A court decision in December that allowed American to stop using Orbitz services started the row as Expedia also opposed the carrier’s system.
Priceline.Com Inc (NASDAQ:PCLN) still sells tickets of American,
Previously, Delta Air Lines (NYSE:DAL) stopped using small sites for its fare info which may drive clients to its own website.
Sabre Holdings Corp is located in Southlake while AMR Corp is located in Fort Worth both in Texas.
