Court Restores US Airways' Damages Claims Against Sabre

A US federal judge has restored US Airways' ability to seek about USD$210 million of damages in its antitrust lawsuit accusing Sabre of inflating booking fees.

Saying the case mattered to consumers hoping to keep down the cost of flying, US District Judge Lorna Schofield in Manhattan said "the interest of justice would be best served" by letting US Airways, now part of American Airlines, seek meaningful rather than nominal damages.

The case concerned fees that Sabre and other travel reservation systems collect from airlines to display flights for booking.

US Airways had accused Sabre of charging inflated fees and suppressing competition, impeding travel agents and others from using cheaper alternative means to book seats.

Earlier this year, US Airways agreed to waive damages claims above USD$20 if it got a bench trial on its remaining claims.

But in September, Judge Schofield said US Airways could not get the relief it sought. That prompted the carrier to ask permission to amend its lawsuit and seek about USD$70 million of damages, or USD$210 million if tripled under antitrust law.

In Tuesday's decision, the judge said that request was fair, provided US Airways covered various Sabre legal bills.

"The interest of justice would be best served by granting the proposed amendment because this antitrust case is not just a dispute affecting the corporate litigants; it also involves claims of illegal restraints on trade that allegedly have harmed consumers through higher prices, lower quantity, less choice and reduced innovation," she wrote.

US Airways previously sought USD$1.45 billion of damages in the 4-1/2-year old lawsuit, but is now seeking a lower amount after Schofield dismissed some of its claims.