DOW JONES NEWSWIRES
AMR Corp.'s (AMR) American Airlines and Sabre Holdings Corp.
agreed to put litigation between the two companies on hold until
June 1, as the airline and fare distributor debate how airplane
tickets are distributed and sold to consumers.
American, the third-largest U.S. airline by traffic, and Sabre,
a key intermediary between airlines and travel agents, on Monday
said they would begin work shortly in an effort to reach a new
agreement. Officials at both companies said they won't have further
comment on the announcement at this time.
A number of airlines have been eager to rein in distribution
costs, although none have pushed as hard as American, which has
several contracts that have expired or are set to expire in the
coming months.
Negotiations on a new contract with Sabre had turned
increasingly contentious since American recently began pushing
online travel agencies to connect directly with the airline's own
technology platform. Closely held Sabre, which owns the world's
largest global distribution system, retaliated by displaying
American's flights and fares less prominently and increasing the
fees it charges American.
AMR's shares were up 0.5% to $7.45 in after-hours trading.
-By John Kell, Dow Jones Newswires; 212-416-2480;
john.kell@dowjones.com