Northwest Airlines today filed suit in the U.S. District Court of Minnesota against the Sabre Travel Network, alleging breach of contract and escalating a travel distribution battle with far-reaching implications. Sabre, the country's largest global distribution system operator, yesterday said it enacted "protective measures" in response to the carrier's decision to impose a fee on any ticket issued by a travel agency through a GDS
(BTNonline, Aug. 25). Northwest said Sabre's "bias action" violates a July 2003 agreement between the two parties.
Other major carriers today offered no comments on the situation, opting to maintain a low profile amid the controversy. Meanwhile, many corporate travel managers were left wondering how these developments may impact preferred relationships with airlines and travel management companies.
Northwest said its agreement with Sabre, similar to numerous content-for-discount deals in force between GDSs and major airlines, "specifically prohibits the bias imposed" yesterday by the GDS. The federal lawsuit seeks damages "to compensate Northwest for the impact on its business resulting from Sabre's actions."
"Sabre has declared war on Northwest," said Richard Copland, president and CEO of the American Society of Travel Agents, "but Northwest still needs a GDS to write a significant portion of its business. They will be seriously disadvantaged." ASTA earlier issued a statement condemning Northwest's actions.
Other parties expressed concern, including travel managers and trade groups that expect agencies to pass any added cost to corporate clients and other consumers. The National Business Travel Association, for example, encouraged travel managers to review corporate travel policies and negotiating strategies.
"These new fees are worse than a fare increase," said Sandra Hughes, AAA travel vice president. "Travelers will have to pay more to benefit from the fare comparison abilities of travel agents and travel Web sites."