Abacus Defection To Sabre Sparks Worldspan Lawsuit

<B> Abacus Defection To Sabre Sparks Worldspan Lawsuit</B>

By Cheryl Rosen

<i>Atlanta</i> - After a nine-year relationship with Worldspan that includes partial ownership of each other's companies, Abacus Distribution Systems Pte Ltd. of Singapore this month plans to switch affiliation to the Sabre Group, the dominant player in the American CRS market.

Worldspan is not taking the defection of its Asian partner quietly. It already has filed suit in U.S. District Court, and lodged a complaint with the International Chamber of Commerce against both CRSs.

Since Abacus was formed by a consortium of Asian airlines in 1989, it has shared a marketing partnership with Worldspan, covering the CRS requirements of travel agencies in Asia while Worldspan handled the Americas and Europe. Worldspan also serves as the Abacus host CRS, and the two firms own 5 percent of each other's shares.

Though only a small player on the global scene, Abacus is the second-largest CRS in the growing Asian travel technology market, behind Galileo International (BTN, May 26, 1997).

In the suit, Worldspan claimed that Sabre and Abacus reached an agreement in early 1997 under which Sabre will buy 35 percent of the Asian CRS. The two "knowingly misled Worldspan" and "prevented it from establishing its own competitive position in Asia," despite the fact that Worldspan was not only a partner of Abacus, but a shareholder and board member.

The suit claims that Abacus provided "detailed customer and market information to Sabre" that will hurt Worldspan's competitive position. Specifically, Abacus knows far more about Worldspan's "strategic planning information, technical planning, customers and source code" than the CRS would care to share with Sabre.

With legal action in progress, none of the parties could freely comment. But Worldspan spokesman Greg Hammer said the CRS's goal "is to preserve our relationship with Abacus."

Sabre "confirmed that it is holding discussions with Abacus for the Sabre Group to provide CRS services" and said it will "vigorously defend allegations made in the lawsuit, which it believes are without merit.