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 17,681.80 -69.59 -0.39%
Nasdaq 5,090.47 -21.26 -0.42%
S&P 500 2,099.81 -8.76 -0.42%
Treasuries 2.29 0.01 0.31%
Data as of 10:58am ET
Company Price Change % Change
Facebook Inc 93.03 -3.96 -4.08%
Bank of America Corp... 18.15 -0.01 -0.06%
Apple Inc 122.10 -0.89 -0.72%
Whole Foods Market I... 36.53 -4.29 -10.52%
Micron Technology In... 19.81 -0.06 -0.29%
Data as of 10:42am ET
Sponsors

Sections

The company's sales have taken a hit since New York City found it was overcharging customers for some products. Whole Foods is actually cutting prices though. But it can't shake its bad reputation. More

The U.S. economy grew 2.3% in the second quarter -- a lukewarm sign of recovery after a sluggish first quarter. More

President Obama signed an executive order announcing plans to start working on the fastest supercomputer in the world. More

Fast-food chains that operate in more than 30 locations nationwide are the sole target of a new rule in New York to hike their minimum wage to $15. But consumers and small business owners, as well as some employees, may be the ones to pay the price. More

You can't blame it on the economy anymore. More Millennials now have jobs, but are still living at home. More