The U.K. antitrust authority's final decision Thursday to bar Sabre's acquisition of Farelogix brings Sabre to a fork in the road not only concerning the deal's future but also its strategy to address the New Distribution Capability. Even though a U.S. federal court this week thwarted the Department of Justice's attempt to block the acquisition, the U.K. move means Sabre has enormous decisions to make, very quickly, amid a pandemic.
A U.S. district court judge has sided with Sabre and Farelogix in the U.S. Department of Justice's lawsuit that sought to block their merger.
Travelport's already elevated ratio of debt to earnings will widen as travel faces a "virtual standstill" and revenue plummets amid the coronavirus pandemic, ratings agency Fitch this week wrote in an opinion downgrading Travelport's parent company. That followed a similar downgrade by Moody's last week.
In an anemic revenue environment where cashflow is wounded and capital is king, Amadeus took further actions this week to fortify its liquidity position, now ready to stand at more than €4 billion.
A U.S. district court judge in New York last week agreed to extend deadlines and hearings in US Airways' nearly decade-old antitrust case against Sabre that American Airlines adopted after merging with the original plaintiff.
In the travel agency sector, a growing number of carriers in recent weeks have inhibited refund processing through global distribution systems and, in the U.S., ARC's settlement system.