American Airlines has dropped its intention to issue Automated Debit Memos (ADMs) to agents booking flights through Travelport GDSs Worldspan and Galileo.
US carrier American had threatened to levy charges of up to £6.24 per sector for a ‘Booking Source Premium’ on the targeted GDSs, amid an escalating dispute with Travelport. It announced the move in December and said the ADMs would be issued from February.
American sales vice-president Derek DeCross announced the dropping of the Booking Source Premium (BSP) yesterday. An American spokesman told Travel Weekly: “American will not move forward with collection of the BSP. No bookings of flight segments made using the Travelport GDSs will attract the BSP and no ADMs will be issued.”
He added: “We expect Travelport to immediately drop the false tax it has added to American’s fares.”
The Guild of Travel Management Companies (GTMC) hailed the carrier’s decision. GTMC chief executive Anne Godfrey said: “The GTMC is relieved American Airlines has dropped plans to enforce the Booking Source Premium.
“We were vocal in our criticism of American Airlines’ proposal. However, our wish was always that this matter be resolved.” Agents and corporate travel management companies (TMCs) were ready to reject the ADMs as in breach of IATA rules.
American had delayed sending out debit memos from the start of February as promised, a spokesman telling Travel Weekly it was “still processing” the memos.
The carrier’s battle with Travelport is due to resume in a US court next month as it seeks to drive bookings via its own online Direct Connect system and eliminate the costs of appearing on GDSs.
Godfrey said: “It remains essential that travel management companies have equal access to all content through all channels.”