Contractual obligations between Orbitz and its global distribution system provider, Worldspan, that apparently limit transactions flowing through Orbitz's Supplier Link non-GDS booking connection, have led Alaska Airlines to consider "suspending" its Supplier Link development. An Alaska official said, "We very much want to do Supplier Link but are very frustrated with the action Worldspan has taken."
According to documents filed last week with the U.S. Department of Transportation, Alaska said, "As a result of Worldspan's decision to increase its minimum usage charges to Orbitz, Orbitz in turn advised carriers such as Alaska and America West that they would have to shoulder all of these increased charges." Orbitz officials said the company still has an ongoing agreement with Alaska on the Supplier Link connection.
America West Airlines, which on Monday began beta testing the Orbitz Supplier Link direct connection, also took issue with what vice president of sales Ron Cole termed "an unreasonable demand" by Worldspan that Orbitz maintain a minimum level of bookings through the global distribution channel.
"Worldspan forced a new contract on Orbitz that was not in the best interest of customers like America West trying to get up on Supplier Link," Cole explained, "but it was an obstacle not a deal breaker."
In its own DOT filing last week, Worldspan "unequivocally" denied Cole's earlier accusation that it threatened to disconnect Orbitz unless it agreed to maintain a certain level of bookings through Worldspan
(BTN, May 23). "Worldspan and Orbitz are parties to a technology services agreement that was vigorously negotiated by both sides," Worldspan said. Orbitz and Worldspan in January announced a new agreement without offering specifics. "Worldspan did not unilaterally dictate the terms of the agreement to Orbitz, nor could it," the GDS company told DOT.
Worldspan further stated that its agreement with Orbitz does not determine with which airlines or at what point Supplier Link arrangements can be developed.