American Airlines today announced the settlement of a legal dispute with Internet fare aggregator FareChase that helps provide a new revenue source to agencies participating in AA's EveryFare program
(BTN, Oct. 7).
The carrier in April began allowing EveryFare participants to book on aa.com--which costs EveryFare agencies $1.75 per flight coupon, lower than the $4.13 per coupon AA is reimbursing to them regardless of channel. EveryFare agencies are paying between $4.36 and $5.30 per coupon to book through one of the four global distribution systems.
EveryFare agencies now also can use FareChase to access aa.com fares, including the oft-cited Web-only discounts AA is providing them on fare classes including full coach. Three of the four GDS companies, several large travel agencies and a number of corporate booking tools aggregate fares using FareChase.
Also part of the settlement, FareChase withdrew an appeal on an injunction AA had won that stopped FareChase's access to aa.com, which the New York-based software firm said would restart in the next couple days. American also said it will license FareChase's MarketView software for Internet revenue management. Additional "mutual" benefits of the settlement were not disclosed.
According to FareChase CEO Trey Urbahn, formerly of Priceline, "The key issue for AA was they wanted to give consent, and have some control, and we've given them both. We believe AA has the right to some control, and we're okay with that." He also said neither party was especially interested in a costly, drawn-out legal battle. "The agreement specific to EveryFare participants allows them to direct-connect to the AA site using our technology, and not only do they get access to preferred pricing, they also get the benefit of the coupon payments," Urbahn said. "So EveryFare agents can effectively double-dip."