The Joseph Saveri Law Firm serves as court-appointed interim Co-Lead Counsel in a class action lawsuit filed in October 2015 in the U.S. District Court for the Southern District of New York on behalf of U.S. air travel consumers against Amadeus North America, Inc., Sabre Holdings Corporation and Travelport Worldwide Limited, along with other affiliated companies.
The suit charges the leading providers of global distribution system (GDS) technology with imposing unlawful contractual constraints on airlines that remove the airlines’ leverage to negotiate lower GDS fees and to develop alternative technologies. These constraints cause airline ticket passengers to pay inflated prices for air travel. Defendants allegedly kicked back a portion of the fees to travel agents as a bribe for their loyalty, ensuring airline dependence on GDS services. Airlines pay defendants roughly $2.4 billion per year in fees for GDS, which provides a technological link between airlines and online or agency vendors.
Consumers blame the companies, who collectively control nearly 100% of the U.S. market for GDS services, for illegally limiting competition and forcing them to payer higher rates for air travel.
“These companies’ illegal restraints on airlines have sidelined the competition and hiked up air travel prices,” says Mr. Joseph Saveri, co-lead counsel for the plaintiffs. “Consumers suffer most by paying unreasonably high rates for air travel, all because airlines are obligated to support this overpriced and outmoded technology.”
The suit, Gordon v. Amadeus IT Group, S.A., et al, seeks monetary damages, attorneys’ fees and costs, and injunctive or other relief for affected air travel consumers.