US Airways and American Airlines Will Stop Flight Listings in Orbitz Website
Princess Carreon | | Aug 27, 2014 10:46 AM EDT |
(Photo : Reuters)
U.S. Airways and American Airlines will pull flight listings from Orbitz website for the inability to reach a long term agreement.
American Airlines Group Inc. President Scott Kirby said that they have been working tirelessly with Orbitz Worldwide Inc. to reach a deal where both sides could benefit but fail to do so. Issues that were not able to address includes keeping distribution costs at a competitive level compared with low cost carriers.
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The disagreement always focuses on the cost which American Airlines has been trying to do over several years. They had even promoted selling more tickets directly to the customers using their own website. But with unforeseen causes, this has led to fights with several online travel agencies such as Expedia Inc. And Orbitz Worldwide Inc, as well as intermediaries like Sabre and Travelport, that operate ticket distribution systems.
Tracking back, American Airlines was already able to pull flights off Orbitz website in the year 2010 and sued the travel agency the year after. Orbitz was sued for violating antitrust laws demonstrated by downplaying American flights whenever consumers search the site.
The two companies had gone over a settlement which brought back their partnership last year although terms were not disclosed in public.
U.S. Airways also expressed their action in pulling out flight listings from Orbitz effective September 1.
Corporate customers for both U.S. Airways and American Airlines may still be able to book their travel tickets with Orbitz, but for individual customers, they need to book from the airlines' websites or to other travel agents including Travelocity and Expedia.
Tuesday afternoon, it was reported that Orbitz Worldwide Inc. shares, $7.86, were down by 57 cents while American Airlines shares, $39.23 were down by 19 cents.
Orbitz was not able to issue a statement with regards to the issue.
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