Airline technology company Sabre plans to fight an antitrust lawsuit filed Tuesday, August 20, by the Justice Department over the Southlake-based company’s US$360 million purchase of competitor Farelogix.
Sabre agreed to buy Miami-based Farelogix in November, but the government’s Antitrust Division sued to stop the merger. The government argues the deal would be harmful to competition.
“Sabre’s proposed acquisition of Farelogix is a dominant firm’s attempt to take out a disruptive competitor that has been an important source of competition and innovation,” said Assistant Attorney General Makan Delrahim. “If allowed to proceed, the acquisition would likely result in higher prices, reduced quality, and less innovation for airlines and, ultimately, traveling American consumers.”
Both Sabre and Farelogix provide technology systems that help airlines, such as American Airlines, sell tickets to passengers. Sabre operates a “global distribution system” that allows airlines, travel agents, hotels, car rental agencies, and other companies to manage inventory in real-time across the world.
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