Two sides renew distribution agreement “for multiple years”
A long-running dispute in the travel industry appears to have been settled. The global distribution system Sabre and American Airlines announce that in settling their dispute they have renewed their current distribution agreement “for multiple years”. American has also agreed to “negotiate” with Sabre for additional technology services in the future, and the airline will receive a monetary payment from Sabre. However, American will continue pursuing its direct connect initiative.
The two sides revealed in early October that they would try to seek a settlement, but it is surprising how quickly it happened given the former animosity between them. As previously reported, in a series of claims and counter-claims the case concerned American Airlines’ decision to give flight information directly to travel agents – its Direct-Connect model – rather than going via GDSs. Whether both the GDS and the Direct-Connect models can co-exist remains to be seen.
[photo courtesy oneworld]