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ARTICLE · 01 APRIL 2019

Texas Supreme Court Holds ADA Does Not Preempt Lufthansa's Tortious Interference Claims Against Sabre

The Supreme Court of Texas recently held in Sabre Travel International, Ltd. v. Deutsche Lufthansa AG that Lufthansa's tortious interference with contract claim against Sabre was not preempted by the Airline Deregulation Act.

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The Supreme Court of Texas recently held in Sabre Travel International, Ltd. v. Deutsche Lufthansa AG that Lufthansa's tortious interference with contract claim against Sabre was not preempted by the Airline Deregulation Act ("ADA"). Deutsche Lufthansa Airline Group owns four subsidiary airlines (collectively "Lufthansa") that contracted with Sabre to market and sell tickets through Sabre's GDS. Lufthansa became concerned, however, that tickets sold through a GDS cost it about $18 more than those sold directly. Consequently, Lufthansa started imposing an $18 surcharge on tickets sold through any GDS.

Sabre objected and began encouraging travel agents to book tickets though Lufthansa's direct sales connections (avoiding the surcharge) and then enter the itineraries on Sabre's GDS so that Sabre could collect its booking fee. Lufthansa brought a declaratory judgment action in Texas state court and included a claim for tortious interference with Lufthansa's

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