With the U.S. Dept. of Justice making inquiries into allegations by Farelogix that Sabre engaged in anti-competitive practices, Farelogix President and CEO Jim Davidson answered counter-charges by Sabre that Farelogix was encouraging "content fragmentation" and seeking a "free ride" on the back of the Sabre global distribution system. Davidson says: "I landed in the Middle East on Tuesday morning (local time) and my Blackberry awoke to a surge of messages about an article published by Tnooz about the DOJ making calls to certain Farelogix customers. After reading the article, I felt compelled to respond to the comments made by the Sabre representative. "To the Sabre comment about the 'evolution of the Farelogix business model to one of content fragmentation,' I offer the following 3 points: "I can confidently say that the Farelogix business model has been consistent from the first day I joined the company, over four years ago. As a matter of fact, on two separate occasions, Farelogix invited and hosted Sabre product managers and executives in our Miami office where we provided full-disclosure product demos. We clearly reviewed with Sabre how the FLX Platform technology accesses and manages multiple content sources, including all GDS, Web, private fares, and direct supplier content. So maybe the 'evolution' comment was related to the fact that since that time, Farelogix has actually developed some solid customer traction with our business model. Perhaps 'fragmentation' is simply a code word for 'lower cost competition.'"...
Read More