IATA: Court Docs Will Expose Sabre’s Stance on Price Transparency

IATA asked a Tarrant County, Texas, court to unseal court records in the American Airlines-Sabre antitrust lawsuit, saying the public has an interest in the documents. Many documents in the case were sealed, ostensibly to protect competitive information.

IATA, which was joined in its motion by the Air Transport Association (now called Airlines for America), noted that the U.S. Transportation Department is investigating whether there is need for regulation of the display and sale of airlines’ ancillary services, and that Sabre “has repeatedly positioned itself as being in support of consumer choice and protection.”

Questions Sabre’s intent
But the organizations said a public review of the documents relating to the lawsuit, which was settled at the end of October, “will likely show that Sabre has only its market position – not consumers’ interests – in mind when supporting such regulations.”

Their motion stated that at a public meeting of the Transportation Department’s Advisory Committee on Aviation Consumer Protection in August, Sabre urged the DOT to require airlines to provide GDSs with all optional service and fee content.

“Specifically, Sabre argued (and continues to argue) that ‘price transparency should be a consumer right in all channels through which an airline chooses to sell it tickets,’ and contended that it is capable of fulfilling such a regulatory mandate,” the motion said.

“In urging the DOT to adopt such a mandate, Sabre portrayed itself as a protector of consumer rights and interests,” it said.

‘Hotly contested’
But IATA and Airlines for America noted that the issue is “hotly contested,” and such a regulation is opposed by most airlines.

The associations said the lawsuit documents were improperly sealed “with complete disregard” for Texas rules of civil procedure. Those rules presume all court records to be open, unless there are “specific, serious and substantial interests” that outweigh that presumption, they said.

IATA noted that its service for its members has led it “to advocate for new distribution models” that likely will increase competition for Sabre “and put pressure on its powerful position in the market.”