JANE LEVERE NEW YORK
The head of Sabre, the travel distribution and information group controlled by American Airlines' parent AMR, unexpectedly left his job in early September, raising questions about the company's future.
Michael Durham, Sabre's president and chief executive officer, left the company suddenly, saying in a prepared statement that it was "simply the right time to do something different". Durham, former chief financial officerof American, did not announce his future plans.
Rumour was rampant throughout the aviation and financial communities that Durham and Donald Carty, chairman of Sabre and AMR, had fallen out. Many said Carty had been seeking special privileges or concessions for American - Sabre's biggest customer - but that Durham had refused. Carty is serving as Sabre's interim chief executive officer until a replacement is found for Durham.
Rumour also suggested that US Airways, whose IT functions have been outsourced to Sabre since late last year, was unhappy with Sabre's work and had gone over Durham's head to Carty to complain. A spokeswoman for Sabre confirmed only that there had been some "challenges" for Sabre in the US Airways assignment.
Nick Moore, a vice president of Jurika & Voyles, an Oakland, California, investment firm that until last summer was one of Sabre's largest shareholders, said he found Durham's departure "discouraging".
If Durham and Carty disagreed over Sabre's capital structure, Durham's departure was "no big deal", but the change in management was "bad from the public point of view," he said.
Another long-time observer of Sabre suggested that rumours of AMR's interference in Sabre might prevent it from winning the United Airlines hosting contract being pursued by both Sabre and Worldspan.
Source: Airline Business
