American Airlines and Sabre Call a Truce

American Airlines and Sabre Travel Network, a company that processes airline ticket transactions, called a truce in their legal battles.

The two companies agreed to put their legal disputes on hold until June 1, and said they would "begin work shortly in an effort to reach a new agreement."

In a brief statement, they said they will "return to operating as they were prior to Jan. 5, 2011, in terms of Sabre displays, American Airlines content and economic terms."

American has been trying to persuade travel agencies and online travel sellers to connect directly with the carrier in order to sell its "ancillary products," which include checked bags, priority boarding, better seat assignments and other "extras."

The airline says the direct connection would use newer technology than that used to connect via companies like Sabre, which together with Travelport and Amadeus process the vast majority of airline tickets issued by travel agents.

Online travel agency Orbitz did not agree to American's terms, and the airline cut off its ticketing authority on Dec. 1.

Expedia also could not come to terms with American, and that agency stopped selling the carrier's tickets when its contract expired at the end of the year.

On Jan. 5, Sabre began bumping American down on flight search results and revoked the discounts that American had received in exchange for a long-term contract, prompting American to file a lawsuit against Sabre.

According to its lawsuit, American generated more than $6 billion in revenue from airline tickets processed through Sabre from December 2009 through November 2010.

Photo, boeingdreamscape, flick
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