American Airlines and Travelport kiss and make up

1st Aug 2011
American Airlines and Travelport kiss and make up

American Airlines has reached a deal with Travelport which will see the existing full content global distribution agreement between the pair extended beyond a 2011 deadline.

The deal settles a dispute which first reached court in the US in Illinois in December last year after the airline terminated an agreement with online travel agent Orbitz, which is part-owned by Travelport.

American had hoped to renegotiate the terms of its appearance on global distribution system displays.

The airline had sought to drive bookings via its own online Direct Connect system, cutting the fees paid to Travelport.

However, American has now signed up to use the Travelport operated Apollo, Galileo and Worldspan systems.

“American Airlines and Travelport announce that the Terms of Travelport’s subscriber opt-in programs for American remain unchanged,” read a joint statement.

No further details were disclosed.

The companies has been negotiating while each preparing competing lawsuits alleging anti-competitive behaviour on the part of the other.

It seems likely American Airlines won some concession on the cost of sale through Travelport GDSs without achieving the reduction to zero that was its declared aim.

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