American Airlines and Orbitz Worldwide entered into an agreement ensuring that the airline's flights will remain on Orbitz websites "into 2012."
Previously, the Illinois Circuit Court of Cook County, handling Travelport v. American Airlines, had ordered that the the 2003 Orbitz-American Airlines charter associate agreement and Orbitz's ticketing authority remain in place until another court order or Sept. 1, 2011, at the latest.
So, the latest agreement gives Orbitz and American Airlines at least three months or perhaps more to work out their dispute.
The July 29 agreement to extend American Airlines' participation in Orbitz from Sept. 1 "into 2012" -- with no specific expiration date publicized -- follows an announcement the same day by Travelport and American Airlines that they too would extend their GDS full content agreement beyond 2011. It had been slated to expire Aug. 31.
Here is the text of Orbitz Worldwide's financial filing today about its new agreement with American Airlines":
On July 29, 2011, Orbitz Worldwide, LLC, a wholly-owned subsidiary of Orbitz Worldwide, Inc. (the “Company”) and ultimate parent of Orbitz, LLC (“Orbitz”), entered into a Letter Agreement with American Airlines, Inc. (“AA”) (the “Letter Agreement”). The Letter Agreement extends the period over which AA is prohibited from terminating for convenience the Second Amended and Restated Airline Charter Associate Agreement dated December 19, 2003 between AA and Orbitz, and the Company’s ticketing authority, into 2012.
No detail was provided regarding whether the parties have resolved any of their differences over distribution economics and direct-connect technology or whether they have just agreed to extend their agreement and prolong negotiations.
American Airlines had removed its flights from Orbitz sites in December 2010, but reinstated them several months ago by court order.