Sabre: Prism Purchase Will Play No Role in GDS Negotiations

The president of Sabre Airline Solutions dismissed suggestions that the company might use its acquisition of the Prism Group, a developer of airline corporate contracting systems, as leverage in negotiations with airlines’ GDS contracts.

Hugh Jones told Travel Market Report that Sabre Airline Solutions, which provides passenger services and management systems and other technologies to airlines, operates independently of other activities within Sabre Holdings, including the Sabre Travel Network GDS.

“If I undermine the trust of the airlines, they’re not going to buy decision-support solutions from me, and I go out of business,” he said.

Jones was responding to published reports in The Beat that suggested the acquisition gives Sabre more power over airlines.

DOJ  review?
American Airlines told the publication that it intended to ask the Justice Department to look into the deal, saying, “It is well known that the Department of Justice is investigating Sabre’s anticompetitive efforts against American and others, and we will be encouraging it to carefully review this transaction as well.”

But Jones said the DOJ had already reviewed the acquisition under the Hart-Scott-Rodino act, and the deal had passed muster.

American told Travel Market Report that “we have no way of knowing if that is correct or not.”

‘Good relationship’
American uses several of Sabre Airline Solutions’ IT products. Jones said the two companies “have had a good relationship.” Sabre Airline Solutions has had no role in the legal wrangling between Sabre Travel Network and American.

American also is one of Prism’s many airline customers. It uses its automated contract management system, which tracks corporate clients’ performance under their negotiated agreements.

Data concerns
When Prism first introduced the system about a dozen years ago, some airlines were hesitant to use it because of concerns over customer data protection and privacy issues.

But most major airlines now use the system, and they say that they do not have access to passenger names, credit card information or other sensitive data.

They say corporate customers also get the benefit of a clearer, more accurate picture of their performance.

Jones said that for customers and for Prism employees, it will be “business as usual” as Sabre absorbs its latest acquisition.