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American Files Antitrust Lawsuit Against Travelport and OrbitzApril 13, 2011 By: George Dooley Travel Agent
In a major move, American Airlines (AA) has filed a civil antitrust lawsuit against Travelport, LLC, and Orbitz Worldwide to stop what AA alleges as exclusionary and anticompetitive business practices of the defendants. AA said it would seek to recover monetary damages that American has incurred as a result of these harmful actions.
In a statement, AA argued that Travelport, “effectively controls the distribution of fares and other content to a large number of travel agencies and their corporate customers, has engaged in anticompetitive conduct to protect its market position from new competition by alternative technologies that are both less expensive and more capable.”
The suit, filed in the U.S. District Court for the Northern District of Texas, also claims that the illegal actions of Travelport and Orbitz have “harmed consumers by suppressing innovation that would be beneficial to airline passengers. In addition to requesting injunctive relief from the defendants’ actions, American is seeking recovery of monetary damages.”
AA said the lawsuit follows “extensive, yet unsuccessful, discussions between American and Orbitz and Travelport (Orbitz is affiliated with Travelport) to resolve a dispute over distribution of the airline’s fares and schedules.”
AA said it intends to honor its existing contractual obligations with Travelport throughout the proceedings of this action and expects it will continue to do so for the foreseeable future. More information about AA’s intentions, as well as a copy of the complaint, is available at www.DistributionUpdate.com. AA said it will have no further comment on the lawsuit at this time.