Published on Thursday, May 26, 2011

American accused of using lawsuit to help contract negotiations


The spat between American Airlines and Travelport continues as the technology company is now accusing the airline of using a current lawsuit to improve its bargaining power.
The two companies are at loggerheads as American is suing Travelport, which owns the Galileo and Worldspan GDS systems, in the US over a matter connected to anti-competition.
Travelport has told the court dealing with the battle: “Preliminary contract negotiations have stalled, and American Airlines has made good on its threat to file a lawsuit such as this one if Travelport did not yield on certain commercial terms.

“This is not a genuine antitrust action brought by consumers suffering from excessive or artificial price increases. It is an opportunistic lawsuit brought by a large and powerful company seeking to enhance its already substantial commercial bargaining leverage.”
The case continues.
by Dinah Hatch


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The recent insolvency of Low Cost Travel Group, one of the large players in the travel industry had a big impact on the travelers, hotels and all related players from both wholesale & retail arms. There were about 27,000 people on a holiday who had booked through the company comprised of a €200 million wholesale arm and €500 million OTA / retail arm.