American to start court action against Travelport

American Airlines is poised to take Travelport to court over the display of fares with additional charges on its Global Distribution Systems Galileo and Worldspan.

The companies are already due in court over Travelport’s claim that American was in breach of contract in December when it withdrew fares from US online retailer Orbitz, in which Travelport has a controlling stake.

Travel Weekly understands American will seek a restraining order requiring Travelport to cease adding the charges to fares. The charges reflect the Booking Source Premium American announced it would add to fares booked through Galileo and Worldspan after Travelport removed discounts enjoyed by American on the cost of appearing on the GDSs.

American insists it will levy the charges in February through Automated Debit Memos (ADMs) issued to agents through the IATA billing and settlement plan (BSP).

It is understood American will seek to issue the ADMs next week for charges on fares booked between December 22 and January 31. Both ABTA and the GTMC corporate travel association believe the ADMs will breach IATA rules and members should refuse to pay them.

American came to temporary agreement with GDS Sabre this week over a separate court case over a similar issue. The battle between the airline and GDSs stems from American’s desire to drive bookings direct through its own system and eliminate the cost of appearing on GDSs.

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