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Saturday, January 11, 2014

US Airways on the other side of antitrust case

By Alexander R. Cohen

Remember the US Airways antitrust case? The Department of Justice tried to stop the company from taking over American Airlines. The case settled and the merger went ahead.

But now I read that US Airways is still involved in an antitrust case—as the plaintiff.
 

Sigh.
 

It turns out that for the past several years, US Airways has been suing Sabre, a company that provides a system travel agents use to sell tickets. The airline says, “Sabre creates barriers for competition by providing a portion of the fees it receives from airlines to travel agents.” In other words, travel agents choose to work with Sabre because it pays them. The airline also says, “If Sabre excluded US Airways from its offerings to its travel agents, those agents could no longer book US Airways tickets through Sabre. US Airways would not be able to survive the subsequent loss of revenue.” In other words, US Airways also benefits from working with Sabre.
 

So a victim of the anti-freedom antitrust laws is also an antitrust plaintiff. What should we say of such a thing? (Other than that bugs us crusading types.)   Read more >




 



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