09 March 2009

Use of ACH as Debt Collection Works in Reverse for SABRE


NW decided it didnt like getting billed by Sabre for what were interline reservations (as opposed to GDS segments). So it threatened Sabre and eventually carried through on its threat and took a cool $1.5 million from Sabre via the ACH - Airline Clearing House.

Sabre sued and has now withdrawn its lawsuit.

The issue was code share segments on the struggling Midwest Express which NW owns now a share of.

What is fascinating about this is that Sabre pushed the issue a bit too far and Northwest stamped on them hard. It sets a clear precedent that in future any GDS who tries to do this will see the airlines push back - hard.

we have all been warned on this one


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