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American Airlines, Orbitz settle dispute over distribution costs | Reuters

April 1, 2013 by Leave a Comment

American Airlines and online travel agency Orbitz Worldwide Inc (OWW.N), which have been locked in a years-long dispute over travel distribution costs and methods, on Monday said they have reached an agreement resolving the litigation between them.

The companies declined to comment on details of the settlement agreement, which must be reviewed and approved by the U.S. bankruptcy court presiding over American parent AMR Corp’s (AAMRQ.PK) Chapter 11 case.

 

American had sued Orbitz in April 2011, saying the online agency and airfare data provider Travelport, which owns a 48 percent share in Orbitz, made American’s fares look higher than they were to consumers.

via American Airlines, Orbitz settle dispute over distribution costs | Reuters.

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Airlines Rejected by Top Court on Price Advertising Rules – Bloomberg

April 1, 2013 by Leave a Comment

The U.S. Supreme Court turned away an airline-industry challenge to federal requirements that carriers display the total cost of a ticket more prominently than the pretax price on web pages and in advertisements.

The justices today left intact Transportation Department rules that were put in place last year to reduce consumer confusion about ticket charges. Airlines said the rules violate speech rights by prevent companies from emphasizing the impact of fees and taxes.

 

Spirit Airlines Inc. and other airlines are arguing that the Transportation Department is trying to block companies “from drawing clear and conspicuous attention to truthful information about the significant tax burden on airline tickets, at a time when the administration is pushing to raise those taxes even higher.” Photographer: Sam Hodgson/Bloomberg

The department is trying to block companies “from drawing clear and conspicuous attention to truthful information about the significant tax burden on airline tickets, at a time when the administration is pushing to raise those taxes even higher,” Spirit Airlines Inc. (SAVE), Southwest Airlines Co. (LUV) and Allegiant Air LLC argued in court papers.

The Supreme Court under Chief Justice John Roberts has backed corporate speech rights in other contexts, striking down restrictions on violent video games, pharmaceutical marketing and political spending.

via Airlines Rejected by Top Court on Price Advertising Rules – Bloomberg.

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Behind the Scenes of the American Airlines/US Airways Merger Talks | Corporate Counsel (Sue Reisinger)

March 6, 2013 by Leave a Comment

Behind the scenes of the proposed $11 billion merger between American Airlines Inc. and US Airways Group Inc. are groups of in-house and outside counsel struggling with the myriad legal issues involved in creating the world’s largest airline. But they won a unique victory last December when marathon negotiations ended in an agreement with both companies’ pilot unions.

“This deal culminated after a fairly dramatic, two-week, round-the-clock, multi-party negotiating process in a room in Dallas over the Christmas [holidays],” recalled labor lawyer Robert Siegel. He is a partner at O’Melveny & Myers and was representing US Airways.

“Well, we did take some sleep breaks,” Siegel corrected himself, “but there were some all-night efforts, and all of them were late-night efforts.” Fortunately the negotiating room was located in law offices across the street from the hotel.

He said the deal helped pave the way for the two airlines to announce their approval of the merger on February 14. It still must pass federal antitrust and bankruptcy court scrutiny.

What made the agreement unique were two factors. First, the deal was cut as part of the merger negotiations while American Airlines was still in Chapter 11 proceedings in U.S. Bankruptcy Court for the Southern District of New York.

via Behind the Scenes of the American Airlines/US Airways Merger Talks.

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