Margrethe Vestager EU Competition Commissioner turns her attention to Amadeus and Sabre

The EU Competition Commissioner Margrethe Vestager has announced an investigation into whether the practices at Amadeus and Sabre have resulted in harm to consumers through increased fares. This investigation was not unexpected. The investigation will focus on the GDS agreements with airlines and agents. It appears to specifically target any restrictions the contracts have with respect to new technologies and new methods of distribution and that this in turn drives up the price of the tickets. T2RL believes this will be a very challenging investigation for the EU. Sabre's timing for the purchase of Farelogix seems to be timed almost perfectly as no doubt Farelogix had been one of the specialist firms offering new technology for airline distribution. Ultimately airline distribution is complex and much more about absolute values of revenue less distribution cost than averages. T2RL will follow this case closely in our research and analysis. Stay tuned to www.t2rl.net.
Published: 23/11/2018
The text for this article is available to subscribers only.
