Q: Our agency has decided to convert to Sabre, which has provided
us with a standard form contract including a three-page "Schedule
A" that has the equipment configuration, pricing and quota. The
only trouble is that I can't understand what Schedule A says. Am I
stupid or is Schedule A incomprehensible?
A: Sabre's standard three-page "Schedule A" has been in use for
well over a decade and is now in force at most of the 36% of U.S.
agency locations automated by Sabre.
Like the Mississippi Delta or the Tokyo street plan, Schedule A
is the product of accretion, with layer upon layer added without
much rhyme or reason. Today, it is a confusing mess.
Like many badly written legal documents, it has three main
frailties.
First, there are undefined terms that have no common-sense
meanings. Second, the same terms are used to mean two or more
different things. Third, two or more different terms are used to
mean the same thing.
To take just one example, the quota for free service is called
the "fixed monthly discount booking level" on page 1, the "Sabre
booking level" on page 2 and the "productivity discount booking
level" on page 3.
I certainly can't blame you for being confused.
Like the Old Testament, the only way to understand Schedule A is
through interpretation. In the case of Sabre, agencies must rely on
their Sabre sales rep at times of contracting and expanding and
Sabre's financial and collection staff when they are in
trouble.
Unfortunately, these interpretations are -- like tax advice
given by IRS employees -- wrong about 50% of the time.
This error rate presents risks for agencies. If you rely on
interpretations and assurances from Sabre employees, you may find
Sabre repudiating those statements when a controversy arises. This
is possible because the standard terms and conditions in the body
of all Sabre contracts state that written terms, including Schedule
A, supersede and nullify all oral assurances and statements about
the contract.
Ironically, late last year, Sabre revised the terms and
conditions in its main contract to make them more concise and
agent-friendly.
Now is the time for Sabre to finish the overhaul by focusing on
the key Schedule A.
Mark Pestronk is a Fairfax, Va.-based attorney specializing
in travel law. He answers your questions in the Crossroads Legal Issues forum. To contact Mark directly,
e-mail him at [email protected].