AA loses claims against Travelport

A federal judge in Texas has dismissed all but one count of American Airlines’ antitrust case against Travelport.

In a sealed decision issued on November 21, the United States District Court for the Northern District of Texas dismissed AA’s claims that:

1.    Travelport monopolises distribution to travel agencies;
2.    Travelport entered into a conspiracy with travel agencies to monopolise distribution;
3.    Travelport’s agreements with airlines and travel agencies unlawfully restrain trade; and
4.    Travelport’s actions are illegal under Texas state law.

The one claim the Court allowed to proceed for further factual analysis was the claim that Travelport monopolises access to Travelport’s current travel agency subscriber base.

In a statement, Travelport said monopolisation claims based on such “narrowly defined markets” rarely succeeded and a similar claim brought against a competitor had recently been rejected by a Federal Court in New York.
The airline has until December 5 to amend its complaint but is not allowed to reassert the claims that Travelport’s agreements with airlines and travel agencies unlawfully restrain trade or that Travelport’s actions violate Texas state law.

While no assurance can be provided, Travelport does not believe the outcome of this dispute will have a materially adverse effect on its results of operations or liquidity.