Opponents of the Google-ITA Software deal produced a video outlining the reasons they believe the acquisition would harm the online travel industry and consumers. And the coalition is promoting its message through a Politico email.
The Google-ITA Software deal could be huge for the travel industry — but might the pending acquisition have even larger consequences than initially envisioned for Google?
As the U.S. Dept. of Justice apparently continues to contact customers of Farelogix and Sabre, Farelogix President and CEO Jim Davidson rejected Sabre’s allegation that their developer’s agreement, which Sabre terminated earlier this year, “was an attempt to free ride off of our database and systems.”
Davidson says Farelogix made payments to Sabre for the developer’s agreement, which enabled the FLX Platform to operate side-by-side with Sabre and provide travel management companies with additional functionality as they acquired content from GDS and non-GDS sources.
Davidson won’t say how much those fees were.
But, I’m betting I might be able to pick up and garage a 2009 Acura TL 4-door sedan with 4-wheel drive or a comparable pleasure craft for the boatload of money that Farelogix likely paid for the agreement.
With the U.S. Dept. of Justice making inquiries into allegations by Farelogix that Sabre engaged in anti-competitive practices, Farelogix President and CEO Jim Davidson answered counter-charges by Sabre that Farelogix was encouraging “content fragmentation” and seeking a “free ride” on the back of the Sabre global distribution system.
Davidson says: “I landed in the Middle East on Tuesday morning (local time) and my Blackberry awoke to a surge of messages about an article published by Tnooz about the DOJ making calls to certain Farelogix customers. After reading the article, I felt compelled to respond to the comments made by the Sabre representative.
“To the Sabre comment about the ‘evolution of the Farelogix business model to one of content fragmentation,’ I offer the following 3 points:
“I can confidently say that the Farelogix business model has been consistent from the first day I joined the company, over four years ago. As a matter of fact, on two separate occasions, Farelogix invited and hosted Sabre product managers and executives in our Miami office where we provided full-disclosure product demos. We clearly reviewed with Sabre how the FLX Platform technology accesses and manages multiple content sources, including all GDS, Web, private fares, and direct supplier content. So maybe the ‘evolution’ comment was related to the fact that since that time, Farelogix has actually developed some solid customer traction with our business model. Perhaps ‘fragmentation’ is simply a code word for ‘lower cost competition.’”
The U.S. Dept. of Justice has begun looking into allegations by Farelogix that Sabre engaged in anti-competitive practices when it terminated a Farelogix developers’ agreement in March.
Tnooz has learned that the Dept. of Justice has recently begun contacting Farelogix customers about the allegations.
Farelogix partner Pass Consulting, as well as Globus and Vayama (also known as Air Trade International), confirmed they have been contacted.
Farelogix alleges — and Sabre denies — that when Sabre terminated the Farelogix developers’ agreement with the Sabre GDS that Sabre was using its imposing market clout in the U.S. market to snuff out a competitor. When that agreement ended, it made it much more difficult for Farelogix customers to integrate their Farelogix bookings with other reservations made through Sabre.