Amadeus Tries To Halt AA, NWA Segment Fee

Amadeus yesterday filed a request for arbitration and injunctive relief against American Airlines and Northwest Airlines and their plan to impose a $3.50 per-segment fee for bookings made through nonpreferred channels—which would include Amadeus. The global distribution system said the fees violate contracts with the carriers by treating its subscribers "less favorably than other GDS customers."

American led the $3.50 charge among domestic carriers—all slated to go into effect Sept. 1—and Continental, Northwest and United quickly matched.

In a letter to U.S.-based travel agency customers, Amadeus North America president and CEO Kay Urban said the surcharges by American and Northwest "discriminate against Amadeus travel agencies in the U.S." and "violate the contractual relationships in place between Amadeus and these carriers."

"We have already filed a request for arbitration of this issue. Further, in the interest of our agency customers as well as our business, Amadeus is also seeking injunctive relief to prevent American and Northwest from imposing such punitive surcharges on our travel agency customers in the U.S.," Urban noted.

Amadeus has lagged behind the other GDSs in structuring new carrier contracts, but last month said it signed a "long-term" content agreement with US Airways, representing its first distribution pact with a major U.S. carrier since GDS deregulation. Amadeus last month said it is in ongoing discussions with "all of the major carriers in North America regarding content distribution" and that the GDS "has secured a variety of extensions on its current content agreements to further facilitate negotiations focused on reaching long-term deals."

"However, at this point we have not yet finalized new content agreements with American and Northwest," Urban noted in the memo. "As a result, according to the carriers, effective Sept. 1 Amadeus would not be considered a 'preferred channel' for American and Northwest bookings, and therefore our U.S. travel agency customers would be subject to surcharges."