An arbitration tribunal has awarded computer reservations (CRS) company World-span - owned by Delta Air Lines, Northwest Airlines and Trans World Airlines - damages and costs exceeding $40 million in its dispute with Singapore-based Abacus Distribution Systems.
Acting under the authority of the International Chamber of Commerce (ICC), the London tribunal concluded Abacus, owned by Singapore Airlines, Cathay Pacific Airways, China Airlines, All Nippon Airways and others, deceived Worldspan about secret talks with rival CRS company Sabre, then a subsidiary of AMR.
In the early 1990s, Abacus selected Worldspan to host its CRS and agreed to market its distribution services in Asia. The two ex-changed 5% equity stakes, but a row began when Abacus switched allegiance to Sabre. Worldspan began arbitration moves in 1998.
In addition to finding Abacus liable for fraud, the tribunal concluded the company disclosed proprietary Worldspan information to Dallas-based Sabre, and breached its contract with the Atlanta, Georgia-based firm. Worldspan president Paul Blackney now plans to take US court action against Sabre. Worldspan is leading the industry's transition to web-based travel information distribution via links with on-line travel agents.
Source: Flight International