Fee conflict continues between AA and online travel agencies

Meanwhile passengers may suffer, as on average the fares offered by online agencies are nearly 45 percent cheaper than that offered by the offline ones.

The main roadblock behind the standoff is the insistence of American Airlines to use of direct connection technology developed by it.

Two out of the four largest American online travel websites have refused to accept it.

American wants introduction of a new system
American Airlines believes that the new technology will prove revolutionary and change the way websites sites display and sells airline tickets.

Cory Garner, distribution strategy Director of American Airlines, said, “We still want to keep relations with all our current travel agencies and we are open to distributing our fares and schedules in an efficient manner as broadly as possible, including through Orbitz and Expedia.”

The new system if implemented will customize offers, as per travelers needs. For instance, during booking, the site will show fares charged for for extra legroom or the favorite seat, etc.

The implementation of the new system will ensure an increase in the revenue for the airlines. The industry experts are however not unanimous, especially in case the demand for air travel declines again.

Feud started in November last year
The dispute between American and the online travel agencies started in November last year when the airlines informed Orbitz about its intention to end their contract in December.

Orbitz went to court to block this move but the Cook County Circuit Judge ruled that the air carrier can proceed with the termination of the contract.

Another online travel agency, Expedia, also jumped in the fray by deciding to not to sell the tickets of the American, expressing concerns over the direct connection technology of the American Airlines.

No immediate plans of restoring sales
At present both the sites are not selling tickets of the American but the tickets are available on other sites like Travelocity and Priceline or on the American airlines, aa.com.

American Airlines declined to comment whether negotiations were on, and said there are no immediate plans for restoring the sale of tickets through these sites.

But Cory Garner, distribution strategy Director of the American said’ “We still want to keep relations with all our current travel agencies and we are open to distributing our fares and schedules in an efficient manner as broadly as possible, including through Orbitz and Expedia.”