American Airlines Ends Their Quarrel With Expedia and Hotwire

Posted Apr 6, 2011

American Airlines is now friends again with Expedia, Inc. (NASDAQ:EXPE) and their affiliate American Airlines and Expedia have resolved their differences about the fees associated posting deals on Expedia. It is a win-win situation for both companies as Expedia customers will have more options and American Airlines will receive more business. Three months ago American Airlines decided that they wanted to avoid the central reservation system that is used by Orbitz and Expedia to deliver prices directly. Here is the new agreement that the online company and the airline company made:

Expedia will initially use their own global distribution system technology. In the future, Expedia will have access to American Airline’s fares and schedule using the aggregation technology provided by a global distribution system. This would be able to provide more customized offers. The other details were not disclosed.