AA withdraws fares from Orbitz

[WorldTraveler]

is this a road that has been transited already or not?

http://finance.yahoo.com/news/american-airlines-fares-no-longer-161500498.html

is this resolvable this time?

 

[robbedagain]

in an employee news letter  AA will withdraw US from Orbitz on Sept 1.    I do not know what the reasoning behind it is  but I do wonder if it has anything to do with the AA/Orbitz fight not long ago

 

[eolesen]

My long time friend Henry Harteveldt put it quite well:
 

“Orbitz was American Airlines’ most expensive, poorest performing online travel agency. High costs, poor business performance, and an inadequate ancillary development roadmap were behind the decision.” - See more at: http://www.tnooz.com/article/fare-fight-redux-american-airlines-us-airways-pull-orbitz/#sthash.QlE1PWJn.dpuf

AA's pulled fares from Orbitz during the fall of 2010 for almost the same reason -- it was time for a contract renewal, and AA wanted to keep its fees and commissions in synch with the revenue being generated in each distribution channel.

Orbitz's leisure site tends to sell only the cheapest and lowest yielding fares, and AA doesn't need to pay a middleman to do what they already sell for less cost on AA.com or thru other OTA's with larger volumes. AA also wanted Orbitz to use a direct connect (bypassing the GDS) but that didn't sit well with Orbitz's owner -- Travelport, who is a GDS. Travelport also owned Expedia, who in retaliation blocked AA's fares for sale.

This all happened in 1Q13, and AA said there was no measurable impact to their sales volume or revenues. Expedia and Orbitz did see an impact if I recall.


AA has put a lot less emphasis on direct connect in the last couple years, but all of the other issues still apply.

 

[swamt]

Just saw on the news a report that AA doesn't want to pay the fees that Orbitz is asking for.  Well, well,well, imagine that.  AA doesn't want to pay the fees, when AA is one of the biggest fee mongers out there.  How does it feel AA?  Now you really know how your customers feel about your fees.  Now that's the pot calling the kettle black...

 

[IORFA]

Be careful what you say, WN most likely isn't too far behind on the fee wagon!

 

[xUT]

Just saw on the news a report that AA doesn't want to pay the fees that Orbitz is asking for.  Well, well,well, imagine that.  AA doesn't want to pay the fees, when AA is one of the biggest fee mongers out there.  How does it feel AA?  Now you really know how your customers feel about your fees.  Now that's the pot calling the kettle black...

Where does SW advertise their flights?
Might want to lighten up Francis, this could get ugly...
😛

 

[FWAAA]

Isn't WN the airline that doesn't sell their tickets via any online travel agencies?   Something about WN not wanting to pay the OTAs the fees they would demand?   😀

 

[eolesen]

Now that's the pot calling the kettle black...

Yeah, you might want to get your facts straight on this one. AA's just following what WN doesn't do.

 

[AdAstraPerAspera]

Just saw on the news a report that AA doesn't want to pay the fees that Orbitz is asking for.  Well, well,well, imagine that.  AA doesn't want to pay the fees, when AA is one of the biggest fee mongers out there.  How does it feel AA?  Now you really know how your customers feel about your fees.  Now that's the pot calling the kettle black...

 
Dumbest comment ever

 

[IORFA]

Apparently, AA and Orbitz agreed to a new contract.
http://aviationblog.dallasnews.com/2014/08/american-airlines-is-back-on-orbitz.html/

 

[john john]

Apparently, AA and Orbitz agreed to a new contract.
http://aviationblog.dallasnews.com/2014/08/american-airlines-is-back-on-orbitz.html/

Sometimes you have to have a threat of a work stoppage to settle a dispute.Especially with this gang

 

[IORFA]

Sometimes you have to have a threat of a work stoppage to settle a dispute.Especially with this gang

You have a lot of dealings with Orbitz? Huh, who knew!

 

[john john]

You have a lot of dealings with Orbitz? Huh, who knew!

Fundamental comprehension

 

[FWAAA]

You have a lot of dealings with Orbitz? Huh, who knew!

😀

john john's post makes it sound like he misunderstands which party held all the cards and had all the power in this dust-up.
 
It wasn't Orbitz.    
 
Just like last time,  AA locked out Orbitz by yanking AA fares, and Orbitz came crawling back (probably with concessions).   Just like it did last time.
 
Threat of a work stoppage?    YGTBKM.   

 

[Flying low]

You all were just worried over nothing. AA/Orbitz reach a new deal....
 
http://money.cnn.com/2014/08/29/news/companies/american-airlines-orbitz-return/index.html?source=yahoo_quote