What led to cracks in American Airlines-Expedia relationship
An American Airlines’ official has clarified that the airline wasn’t able to “come to economic terms” on its agreement for the international and domestic first and business class tickets as far as relationship with Expedia is concerned. (1/15/2007)
The airline last week officially stated that it will no longer sell international tickets or domestic first or business class tickets through Expedia.com or any other website powered by Expedia.com to customers purchasing travel from the United States. Domestic coach tickets on American will still be available through Expedia.com.
Mary Sanderson, a spokeswoman for American, shared as part of a turnaround plan, the airline has identified lowering distribution costs as one of its objectives.
“Right now, as we’ve been working with Expedia, the economics for these particular tickets are just not working out at this point,” Sanderson said. “We do believe having a wide variety of distributor lines is important, especially since American is a global carrier. Having said that, having that wide variety of distribution services can’t mean that you’re not cost competitive.”
American Airlines had stated: “Domestic coach tickets on American will still be available through Expedia. American’s full content -- including all international, domestic first and business class tickets -- is still available for purchase through a number of outlets, including its own award- winning website, AA.com, its professional reservations agents, travel agencies in locations worldwide, and other online travel agencies. Tickets already purchased remain valid for travel on American.”
As per the information available, in a prepared statement, the online travel agency says the move “was the result of Expedia’s choice to cease processing AA bookings using the Worldspan GDS at this time”. Expedia says it made the decision “independent of any negotiation issues with AA”.