Consumers File Suit Against GDSs
by Michele McDonald /Taking a page – in some cases, literally -- from US Airways’ lawsuit against Sabre, a group of 21 consumers filed an antitrust lawsuit against the three GDS companies operating in the U.S., saying their practices resulted in higher fares for passengers.
The lawsuit, filed on July 14 in the U.S. District Court, Southern District of New York, is seeking certification as a class action representing “all residents of the United States who purchased an airline passenger ticket for travel on any of the airlines between June 1, 2006 and the present.”
The airlines in question are identified as American, Continental, Delta, Northwest, United, US Airways, AirTran, Alaska and Jet Blue.
Echoing the US Airways lawsuit, the complaint claims that the GDS companies conspire to avoid competing with each other.
It quotes one GDS executive as saying, “It’s hard enough competing with GDSs for agencies, don’t need to drive more competitive framework into airline relationship side of business.”
The class would include both travelers who purchased tickets through an agency using a GDS and travelers who purchased tickets directly from the airlines because, the lawsuit says, GDS companies’ full-content contracts with airlines prohibit the carriers from charging lower fares through their direct channels than those available through the GDS systems.
‘Artificially high fares’
A judge had not yet been assigned to the case.
The lawsuit asks that the defendants be “permanently enjoined and restrained from continuing and maintaining their contract, combination and conspiracy.”
It seeks damages for “artificially high fares” paid by the plaintiffs and treble damages for antitrust violations.
In a statement, Amadeus said, “These allegations are entirely without merit and Amadeus will defend this action vigorously. Global distribution systems have been instrumental in facilitating an era of unprecedented mass air travel, delivering value both to the airline industry and to the traveler.
“Our technology serves a global network of travel agencies, management companies and online properties that provides airlines and other travel providers with a global market place at a cost effective price. The GDS has ensured that travelers across the world have access to the choice and transparency they demand.”
Travelport and Sabre also said they will vigorously defend themselves against the claims.