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American sued after dropping Orbitz
Travel-reservation systems provider Travelport LP has sued to block American Airlines Inc. from terminating online travel agency Orbitz Worldwide Inc.’s ability to sell tickets on American’s flights.
“Travelport, whose affiliate owns 48 percent of Orbitz’s stock, would suffer substantial harm if American stops providing fare data to Orbitz, a possibility that Orbitz disclosed in a regulatory filing,” according to the complaint filed in chancery court in Chicago.
“The termination would be a breach of American’s contract with Travelport, the company said in its complaint, according to Orbitz,” said Booomberg.
American is pushing online travel agencies to obtain flight and fare information directly from it instead of through global distribution systems such as Travelport’s Galileo and Worldspan, said Bloomberg, quoting Ortiz’s Barney Harford.
Travelport said in the complaint that it lost $50 million in share value when Orbitz fell.
The company has a 2006 agreement with American Airlines to obtain “full and complete” access to information about its flights, air fares and other information. The airline hasn’t honored Travelport’s request to withdraw its termination notice, according to the complaint.
“AA is coercing Orbitz into changing its existing business model to one that AA believes will more thoroughly stuff AA’s pockets,” Travelport said in the complaint.
Travelport is seeking a court order stopping American from terminating Orbitz ticket sales until the case can be decided by a judge.
By David Wilkening
David
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