COVID-19 Special Coverage
DOJ seeks to block acquisition of airline booking agency

The US Department of Justice (DOJ) filed a complaint in the Delaware district court to block Sabre Corporation’s $360 million dollar acquisition of Farelogix, Inc.

Sabre is currently one of the largest booking service companies providing airlines and travel agencies the technological solutions to book tickets with various airlines. The DOJ is concerned that Sabre’s acquisition of a disruptive competitor like Farelogix that uses innovative technological advances to improve booking services would drive up prices for both airlines and the consumer. Sabre controls a large portion of the industry market but has been resistant to technological advances embraced by competitors like Farelogix. The DOJ complaint alleges that allowing the acquisition to go through would stifle innovation in the airline booking services industry that financially impacts the consumer.

The companies have agreed to extend their acquisition date to April 2020 to allow for time to resolve any DOJ challenges.