U.S. government sues to block Farelogix sale to Sabre
08/21/2019|7:17:31 PM|PhocusWire

Sabre dared regulators last week to block its $360 million acquisition of Farelogix - and now the U.S. government has taken up the challenge.

The Department of Justice is suing the travel distribution and technology giant through a civil antitrust lawsuit filed today.

In it, the DoJ says the deal (originally announced during The Phocuswright Conference 2018 in Los Angeles) will eliminate competition that has, so far, "substantially benefited airlines and consumers."

In effect, Sabre's deal to buy Farelogix allows it to "to eliminate a disruptive competitor that has introduced new technology to the travel industry and is poised to grow significantly," the DoJ argues.

It claims the integration of Farelogix into the Sabre family of services would "likely result in higher prices, reduced quality and less innovation for airlines."

Sabre, in response, says it will fight the lawsuit and believes that the deal will be completed. It also believes the suit's claims "lack a basis in reality and reflect a fundamental misunderstanding of the industry."

"The airline technology sector is highly competitive, with many companies – even airlines themselves – competing to deliver next-gen retailing solutions. Sabre looks forward to showing the court how dynamic this industry is and having airlines and travel agencies explain how the industry actually works."

Sabre will file its formal written response to the DOJ’s lawsuit "at the appropriate time."

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