American Airlines has informed Orbitz Worldwide that it
would "terminate the company's authority to ticket AA flights on its
Orbitz.com and Orbitz for Business Web sites" as of Dec. 1, according to
an Orbitz filing with the Securities and Exchange Commission.
The two parties were operating under an agreement signed in
2003 that was set to expire in 2013.
"We continue to negotiate in good faith to reach a
viable, mutually beneficial agreement with Orbitz," according to an AA statement. "We believe it is important that our distribution channels be
cost-effective and efficient."
Orbitz Worldwide CEO Barney Harford today told analysts that
American Airlines' decision represents the "first salvo" in a
"broad attack ... on the travel distribution landscape," including
global distribution systems and "agencies in general."
Travelport, which owns 48 percent of Orbitz Worldwide, today
said it is "taking a number of actions to defend travel agents and consumers
commensurate with AA's anti-consumer and anti-competitive actions," but offered no further detail.