US: 2nd Circuit erases $15m in damages awarded in airline antitrust case

A US appeals court breathed new life into an eight-year-old US Airways federal antitrust complaint against global distribution system provider Sabre on Wednesday, September 11.

The US Court of Appeals for the Second Circuit in New York reversed the Southern District of New York’s earlier dismissal of two counts in the lawsuit by US Airways, which merged with American Airlines in 2013. 

The airline alleged that Sabre conspired with Amadeus and Travelport to monopolize distribution services to travel agencies in violation of the Sherman Antitrust Act, among other accusations.

The appeals court agreed with the lower court that it was correct to limit the damages that US Airways could collect from Sabre to US$15.3 million, and the appeals court decided to remand the case back to the district court for further proceedings, including the possibility of a new trial, on the allegation that Sabre’s 2011 contract with the airline harmed competition in that it forced US Airways to pay excessive booking fees to Sabre, and restrained trade.

An American Airlines spokesperson said, “We have received the Second Circuit’s decision and are evaluating it now. The court has remanded the claims back to the district court for a new trial. We continue to believe in the merits of our claims and expect to retry them in the event that we cannot reach a resolution with Sabre.”

Full Content: Litigation Daily, Skift

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