American Airlines and Sabre propose fee dispute settlement

American Airlines (AA, Dallas/Fort Worth) and distribution systems provider Sabre Airline Solutions have reached a tentative settlement in their USD139 million legal fees dispute, according to a November 16 court filing.

"We represent the parties in the above-captioned action and write jointly to notify the court that the parties have reached an agreement-in-principle to resolve their pending dispute," write counsel for both sides in the matter of US Airways, Inc., for American Airlines, Inc. as Successor and Real Party in Interest v. Sabre Holdings Corp., et al. (case no:1:11-cv-02725-LGS) being heard in the US District Court (Southern District of New York).

The court filing did not reveal the settlement's proposed terms. However, if approved, the arrangement will end a 13-year antitrust legal dispute that US Airways and, later, its successor-in-interest, American Airlines, ran against Sabre. US Airways alleged Sabre prevented travel agents and others from using less expensive alternatives for booking airline seats and had imposed an unduly restrictive distribution agreement.

At a May 2022 trial, jurors agreed that Sabre had harmed US Airways by wilfully maintaining monopoly power but decided that it did not constrain trade, as alleged. They awarded the airline a nominal USD1 in damages. American Airlines went on to pursue Sabre for costs, which it said amounted to USD139 million.

Earlier this year, US District Judge Lorna Schofield denied American's initial attempt to claim the costs, saying the two parties should try to settle the matter themselves. During an October hearing, American's counsel said they had tried to do so but failed to come to terms. Sabre was due to respond during a November 26 hearing. Both sides have asked the court to adjourn the hearing until December 6.

"The parties will advise the court if a settlement is finalised in the interim," the filing adds.