Issues & Trends – September 2011
Win for Travelport as legal battle with AA continues
IN the latest development in the protracted US legal battle between Travelport and American Airlines (AA), the GDS company has scored a victory over the airline.
The case, which centres on the contractual rights of Travelport Online Travel Agency, Orbitz, to sell AA tickets, is seen to have wide implications for GDS and travel agent access to airline inventory.
Unusually, Travelport has received support from its rival (and former AA subsidiary) Sabre as well as the American Society of Travel Agents and major agencies.
A statement issued by Travelport said: “The Illinois Appellate Court yesterday affirmed Travelport’s preliminary injunction against American Airlines. The injunction preserved Orbitz’s ability to sell AA tickets.
“The Appellate Court also recognized Travelport’s position that the AA contract allows all Travelport agents to fully utilise AA’s content.
“The ruling further supports one of Travelport’s damages claims against AA given AA’s improper termination of Orbitz’s ticketing authority.
“As the Appellate Court confirmed, ‘Travelport has standing to complain that American breached the [parties’ contract], and its implicit covenant of good faith by barring Travelport from earning income from booking flights through…Orbitz’.”
The statement quoted Travelport chief administrative officer Eric Bock saying: “We are very pleased with the Appellate Court’s recognition of our contractual rights. Those rights are critical to protecting our agencies’ ability to have and fully use AA’s content.”