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Expedia is a publicly-listed online travel agency, based in the US but with localised sites for some 20 countries around the world. The online travel retailer is one of the largest in the world, with a diverse network of brands offering all tools for travel researching, planning and purchasing. Expedia-branded websites feature airline tickets, hotel reservations, car rental, cruises and other in-destination services from a broad selection of partners.
124 total articles
11 total articles
With the revelations from American Airlines’ earnings call as well as lawsuits, especially that filed against Sabre by US Airways on 21-Apr-2011, it may only be a matter of time before the great distribution battle is settled once and for all in the airlines’ favour. After all, the deals that have been cut by US Airways and American favour the direct connect strategy. Even so, those deals have largely between between the airlines and online travel agencies. The big test is now between airlines and global distribution systems. US Airways' move will only accelerate the industry-wide battle, with potentially wide-ranging repercussions. Although the conflict has so far been contained in the US, its principles will be watched closely by industry and regulators alike all around the world. The key issue is whether the airline industry can evolve from a mode of transportation to a retail business.
Just when you thought it was safe to assume the fight between American Airlines and GDSs had settled there comes a new attack by American on Orbitz. It didn’t take long after American and Expedia reached a deal, in which it seemed that Expedia blinked, for the airline to go after Orbitz and Travelport with a new lawsuit charging monopolistic practices.
The USD700 million deal for Google to acquire ITA software, having been approved by the US Department of Justice with conditions last Friday, will likely face further investigations. It is clear from reactions to the qualified approval the issue is far from over and has done little to actually assuage the concerns from rivals as well as both US and European authorities. As it is, DOJ will be monitoring Google’s compliance with the conditions placed on the deal to protect rivals’ access to ITA Software and to prevent bias towards Google’s own products.
Reporting its 23rd consecutive profitable quarter, WestJet posted record 4Q2010 earnings at CAD47.9 million on total revenues of CAD692.8 million, up 21.5%. Ex special items posted in 2009, earnings were up 217% year on year in the quarter. For the year, net earnings were up 40% to CAD136.7 million on a 14.4% increase in total revenues to CAD2.6 billion.
What had been skirmishes between American Airlines and Online Travel Agencies (OTA) escalated when Sabre unilaterally began biasing against American’s domestic flights. The airline immediately won an injunction against Sabre’s move.
The action by American Airlines to remove itself from Orbitz continues to resonate, and has pitted American against the combined might of the GDS providers, as well as raising the ire of other industry constituents.
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