THE ASIA ADVENTURER
Confirming Sabre’s commitment to the Asia Pacific market, Klein bought its joint-venture partner Abacus, gaining full distribution capabilities in the region. Plus, Sabre snagged long-term agreements with the 11 airlines that sold their stakes.
“Asia/Pacific is the fastest growing region in the world,” Sabre CEO Tom Klein told investors in October. And now that Sabre has acquired Singapore-based distribution provider Abacus International outright, it’s no longer competing in the region with one arm behind its back.
In 2015, it bought from 11 airlines the 65 percent stake it didn’t hold in Abacus. Taking full ownership of the regional distribution system enhanced Sabre’s stature in the region, made it a fiercer competitor and removed what Klein called the “bureaucracy” and “inefficiencies” of operatin under a joint structure.
“Prior to our acquisition, the Abacus joint venture had 12 voices with a myriad of priorities,” Klein said in October. “With our priority in Asia/Pacific now being crystal clear, we’ll grow by providing innovative technology and the best service model in our industry, and we’ll better align investments in markets like India, where we believe the joint venture lacks optimal exposure.”
Abacus already operated as an extension of the Sabre global distribution system, given the companies’ historical ties, equity relationship and common technology core. Yet, since the acquisition, Sabre has taken full control of strategy, sales and marketing, technology and customer relationships.
And that has better positioned it in the corporate market, Klein said. “We’ve immediately strengthened our value proposition to the world’s large global travel management companies and corporations,” he said. “This is a customer segment in which Sabre has historical strength, and we’re already seeing traction and discussions that bring consistency to our global value proposition.”
Further, as part of its purchase agreement, Sabre secured longterm distribution agreements with all 11 Asian airlines that sold it their stakes in Abacus: All Nippon Airways, Cathay Pacific, China Airlines, EVA Air, Garuda Indonesia, Dragonair, Philippine Airlines, Malaysia Airlines, Royal Brunei Airlines, SilkAir and Singapore Airlines.