Orbitz resolves dispute with American Airlines

Online travel agency Orbitz Worldwide has reached an agreement with American Airlines to resolve long-standing litigation between them.

Online travel agency Orbitz Worldwide has reached an agreement with American Airlines to resolve long-standing litigation between them.

The agreement follows years of disputes between the carrier and companies that distribute its flights and services, culminating in a series of lawsuits and countersuits related to alleged anti-trust violations and breach of contract.

American has been at the forefront of broader US airline industry discontent over the role of intermediaries that carriers pay to sell flights and other services to travel agents.

The carrier has already clinched deals with two of the largest intermediaries – Travelport and Sabre – which pave the way for the airline to offer more services direct to agents via an online system.

The settlement requires review and approval by the court presiding over American Airlines’ parent company AMR Corporation’s bankruptcy restructuring.

“At this time, neither company will have further comment,” a statement said.