Travelport has adjusted its display of American Airlines’ flights on global distribution systems (GDSs) Worldspan and Galileo to remove the surcharges on fares added since December.
The technology company acted on Thursday in response to American dropping a threat to issue Agency Debit Memos (ADMs) to retailers for a ‘Booking Source Premium’ (BSP) of up to £6.24 per sector.
The moves mark the first lessening of tension in the dispute between American and Travelport, as the US carrier seeks to drive bookings via its own Direct Connect system and eliminate the costs of appearing on GDSs. However, the pair are understood to be no nearer a settlement.
Travelport GDS chief commercial officer Kurt Ekert said: “We welcome American’s decision to remove its surcharges on bookings made through the Travelport GDS in markets outside the US and Caribbean. This is good news for the travel industry and consumers.
“As a result, Travelport removed the American surcharge fee. We thank our customers around the world for the overwhelming support we have received for our position in this matter.”
American sales vice-president Derek DeCross announced the dropping of the BSP on Wednesday.
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.”
Agents and corporate travel management companies (TMCs) were ready to reject the ADMs as in breach of IATA rules.
Travelport added the surcharge to cover the BSP, which American insists was applied to cover an increase in GDS fees it must pay after the companies sued one another for breach of contract.
Their battle is due to resume in a US court next month.