Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

American Air sues Orbitz

By Aaron Smith, staff writer


NEW YORK (CNNMoney) -- American Airlines has filed an antitrust suit against Orbitz Worldwide and its parent, the latest salvo in a long-simmering dispute over online airfares.

The airline wants Travelport and Orbitz, (OWW) which is 48% owned by Travelport, to use its direct connect technology to access airfares online. The two companies use a different type of technology called global distribution system.

American, which is owned by AMR Corp (AMR, Fortune 500)., said it targeted Travelport because it "effectively controls the distribution of fares" and "has engaged in anticompetitive conduct to protect its market positions from new competition by alternative technologies that are both less expensive and capable."

But Orbitz spokesman Brian Hoyt accused American of using "schoolyard bullying tactics to try and force us into submission."

"They're trying to force a distribution deal with us that is ultimately a negative for consumers," said Hoyt.

Travelport said in a press release that the lawsuit is "merely another attempt by AA to gain bargaining leverage through litigation" and that it will defend itself in the suit, which was filed in the U.S. District Court for Northern Texas.

American and Orbitz used to be partners, but they parted ways in December.

At that time, American also broke up with Expedia, but they patched things up and resumed their partnership on April 5. To top of page

Index Last Change % Change
Dow 17,286.49 146.25 0.85%
Nasdaq 4,664.24 69.80 1.52%
S&P 500 2,021.77 21.23 1.06%
Treasuries 1.46 -0.00 -0.34%
Data as of 11:53am ET
Company Price Change % Change
Bank of America Corp... 12.40 0.21 1.77%
Freeport-McMoRan Inc... 10.70 0.57 5.63%
Apple Inc 92.21 0.17 0.18%
Ford Motor Co 12.22 0.06 0.53%
Micron Technology In... 12.78 0.55 4.54%
Data as of 11:38am ET
Sponsors

Sections

Bank stocks are experiencing their worst stretch since 2011. The rush to dump banks shows how Brexit makes banks' already difficult situation that much more challenging. More

Economists are already starting to notch down their U.S. economic outlook after the Brexit vote last week. More

Baubax, which raised $9.2 million on Kickstarter for its travel jacket, has a new project: clothes that can wirelessly charge your smart devices. More