The motion for a preliminary injunction derived from a debate, wherein American Airlines pushed for travelers and agents to connect directly with its computers to book tickets rather than using a third-party site.
American Airlines said that by doing so, the company can reduce intermediary costs and provide consumers with a more customized experience. In November, the American second largest carrier said that it will cease from giving data on Orbitz after a 17 percent lost in Orbitz share price and management’s accusation that the carrier had launched a broad attack on the travel distribution landscape.
On the contrary, Orbitz and Travelport squabbled that without an agent to pool ticket pricing and reservation, the clients will not be able to identify differences on prices effectively. Orbitz said that it will try to meet a deal with the major airline in the United States, saying that the carrier made up about five percent or about $30 million of the company’s revenues for the first nine months of the year.
Moreover, Orbitz confirmed that it has reserved as much as $800 million in revenues for American over the last four quarters. However, American Airlines said that such figure sounded too high and added that the company planned to recall any lost revenues with the help of customer incentives and communications. Analysts commented that this ongoing litigation is a heavy handed move that can consequently backfire. AMR shares, an American Airlines parent company, rose one percent to $8.05 in an aftermarket trading.