Aeromexico raises USD290m in IPO; American takes Travelport and Orbitz to court
Grupo Aeromexico reportedly raised MXN3.4 billion (USD288.2 million) before an over-allotment option in its IPO. The airline priced the shares at 31 pesos each and sold 109 million shares before the over-allotment option.
In another action in the ongoing war over ticket and fares distribution, American Airlines has moved to file a civil antitrust lawsuit against Travelport and Orbitz Worldwide. The lawsuit is aimed at stopping what American has labelled "exclusionary and anti-competitive" business practices of the defendants and recover monetary damages that American has incurred as a result of these actions.
The lawsuit states that Travelport, which controls the distribution of fares and other content to a large number of travel agencies and their corporate customers, has engaged in anti-competitive conduct to protect its market position from new competition by alternative technologies.
Orbitz responded, stating American Airlines claims are baseless and the latest in a series of tactics to force Orbitz to adopt a carrier ticket distribution model that limits consumer choice and inhibits competition. Travelport intends to "vigorously" defend the lawsuit.
Selected Americas share price movements (% change): 13-Apr-2011