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AA wants Expedia, Orbitz to come around

January 05, 2011 |

A senior executive at AMR Corp.'s American Airlines said the carrier hopes it can reach deals with the two largest U.S. online travel agents but that it is committed to changing the way others sell its tickets, The Wall Street Journal writes.

American Airlines, the third-largest U.S. airline, remains in "active discussions" with Expedia Inc. and Orbitz Worldwide Inc. after a contract dispute prompted American to block Expedia and Orbitz from selling its tickets, said Cory Garner, American's director of distribution strategies.

Mr. Garner, in an interview, said American remains committed to a wholesale shake-up of its distribution strategy by requiring all external sellers to access its fares and schedules through a direct electronic link rather than through the global distribution systems, or GDS, such as Amadeus and Sabre that still dominate the airline ticket market, especially for corporate travel.

GDS operations, which also include Worldspan and Galileo, were originally set up by airlines themselves, but have since been sold on to independent owners.

He said American remains comfortable with booking levels despite dropping the two online sellers, and dismissed claims it was holding onto market share only because of extra incentives for passengers booking through its own website.

"Ultimately we will see all travel agency volume going through Direct Connect," Mr. Garner said, referring to the American distribution system at the heart of its dispute with parts of the industry. That would include the GDS providers, whose contracts with American are due to expire later this year.

Get the full story at The Wall Street Journal

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