American Airlines sued Texas Air Corp. and...

American Airlines sued Texas Air Corp. and its two airline subsidiaries, Eastern Airlines and Continental Airlines, claiming that they illegally induced travel agents to breach their contracts with its Sabre computerized reservation system. American seeks actual damages and punitive damages of $100 million. The suit charges that Texas, Eastern and Continental illegally offered override commissions and agreed to indemnify agents against suits by American for breach of contract. Sabre terminals are in 12,000 travel agencies and account for 38% of the market. Texas Air said its SystemOne reservation system, which has about 6,500 clients, has been “making advances in the travel market” but that its “tactics are not illegal.”