Litigation Settled Between American Airlines and Orbitz
May 15, 2013
Austin, TX (Law Firm Newswire) May 14, 2013 – American Airlines has settled its lawsuit against Orbitz.
The lawsuit over the agency’s method for displaying information about the airline’s fares and schedules had been filed in federal district court in Fort Worth, Texas, where American Airlines’ (American) parent corporation is based.
The suit was part of an ongoing dispute between American Airlines and Orbitz over the distribution of travel information. In the lawsuit, American claimed that Orbitz made American’s fares appear higher than they actually were.
“This type of litigation often arises when companies are attempting to gain a competitive edge,” said Austin business litigation attorney Gregory D. Jordan.
American Airlines, which recently announced that it would be merging with US Airways to form the world’s largest airline, had removed its fares from Orbitz in 2010 after the company refused to incorporate American’s own system for pricing trips, which allowed customers to take into account other factors in addition to air fares. American Airlines fares reappeared on Orbitz in June of 2011.
The lawsuit was filed in the United States District Court for the Northern District of Texas, naming Orbitz and Travelport, an airfare data provider that owns nearly half of Orbitz, as defendants. Terms of the settlement were not disclosed, and it must still be approved by the U.S. bankruptcy court presiding over the Chapter 11 proceedings of AMR Corp., American’s parent company. In February, Orbitz attempted to enforce what it said was an agreement to settle the litigation, but U.S. District Judge Terry Means said he would not enforce a settlement agreement that was not completed.
Austin business lawyer Jordan continued that “Settlements involving companies in bankruptcy can be very complex. I am confident that American and Orbitz both hope this settlement will be approved.”
In March, American and Travelport reached a settlement and agreed to a new global distribution system. In 2012, American also settled litigation with Sabre Holdings Corp, a company that provides flight reservations. The settlement in that lawsuit took place after a jury trial had already begun in state court in Texas, and involved payment to American of an undisclosed sum.
Orbitz was the last remaining defendant in the litigation, in which American claimed that the defendant companies were trying to block its entry into the online flight-reservation business. With the lawsuits settled and the merger with US Airways underway, American is closer to emerging from bankruptcy protection.
The Law Offices of Gregory D. Jordan has handled many business and employment disputes involving non-compete agreements, unfair competition, confidentiality agreements and breaches of contract. To learn more visit, http://www.theaustintriallawyer.com.
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