Saturday, July 30, 2011

Dispute Between American Airlines and Travelport Continues

American AirlinesAmerican Airlines and Travelport LP, a ticket middleman, have just delayed a duel between the two companies reminiscent of ones in the past that have resulted in American flights disappearing from popular travel websites and ticket brokers.

In a statement from both American Airlines and Travelport that was released yesterday, the two companies stated that agreements that are set to expire in the next couple of months have been extended to last until the end of the year. One of the deals that included Worldspan, an affiliate of Travelport, was set to expire on Sunday.

Travelport's "global distribution systems", which include Worldspan, Galileo and Apollo, provide information about airline flights and fares to travel agencies around the world. American Airlines wishes to deal more directly with travel agencies in order to reduce distribution costs and to tailor offers to customers directly.

American Airlines has also accused Travelport of breaking antitrust laws by raising fees and burying information about American flights, making travel agents see flight information and prices from other airlines before they see those from American. Several lawsuits have arisen due to the dispute involving AMR Corporation's American, Travelport, Sabre Holdings Corporation and online travel agencies which include Orbitz Worldwide Incorporated. The dispute even got so bad that American Airlines flights didn't even appear on Orbitz or Expedia.

Both American Airlines and Travelport LP have declined to comment on the current situation.

Source: Bloomberg Businessweek - American Airlines, Travelport extend agreement is news of, for and by SMBs! The Small & Medium Business Magazine!

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