American Airlines v. Skiplagged

Old Aug 22, 23, 12:49 am
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American Airlines v. Skiplagged

New law suit - based on alleging deceptive practices, etc.

https://www.washingtonpost.com/natio...ries_p005_f005
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Old Aug 22, 23, 7:21 am
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If Skiplagged is operating under an ARC number to issue airline tickets, then AA can revoke it's appointment to sell AA tickets if the agency is engaging in prohibited behavior as outlined in AA's Addendum to Governing Travel Agency Agreement. Hidden city ticketing is a prohibited practice among a slew of others. It seems much simpler than going through a court to sue the agency. If I recall, that didn't go well with United's effort a few years ago. Why not just turn off the AA ticket spigot for this agency and be done with it? But, perhaps there is more to this than what I can see.
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Old Aug 22, 23, 7:44 am
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The UA case was tossed because the judge said the court lacked jurisdiction not because the case had no merit.
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Old Aug 22, 23, 10:51 am
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If AA had fair fares this wouldn't be an issue. The like to gouge people at their hubs, which is a monopolistic tactic and should be ruled illegal. If they want to price a ticket from X to DFW to SAT $100 less than X to DFW ok but you can't force a person to go on the next flight. It is exactly like ordering a meal deal and not eating the fries does McDonald's ban you for doing that?
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Old Aug 22, 23, 11:46 am
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Originally Posted by Lonedaddy
If AA had fair fares this wouldn't be an issue. The like to gouge people at their hubs, which is a monopolistic tactic and should be ruled illegal. If they want to price a ticket from X to DFW to SAT $100 less than X to DFW ok but you can't force a person to go on the next flight. It is exactly like ordering a meal deal and not eating the fries does McDonald's ban you for doing that?
All the airlines price their tickets based on the passenger's start and final destination,based on market competition and other factors. So it's not just an "AA isn't fair" issue. It's an industry practice, and you agree to the routing when you buy the ticket. It's true that hubs hold a captive audience, but luckily they're not monopolistic as there are numerous other airlines you can fly. Just maybe not nonstop.
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Old Aug 22, 23, 11:54 am
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Originally Posted by UKtravelbear
The UA case was tossed because the judge said the court lacked jurisdiction not because the case had no merit.
It just seems to me to be easier to revoke the agencys (Skiplagged) ability to issue tickets on behalf of American Airlines than to go to court. American has the ability to do that.
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Old Aug 22, 23, 12:01 pm
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Originally Posted by PHL
All the airlines price their tickets based on the passenger's start and final destination,based on market competition and other factors. So it's not just an "AA isn't fair" issue. It's an industry practice, and you agree to the routing when you buy the ticket. It's true that hubs hold a captive audience, but luckily they're not monopolistic as there are numerous other airlines you can fly. Just maybe not nonstop.
Agree the industry practice should be disallowed. Just because they all do it doesn't make it right. It certainly cost AA more to fly someone beyond Dallas than just to Dallas. And if they want to price that way ok but don't disallow skiplagging that creates the issue. I could have a ton of reasons to book a flight an not get on it. I wasn't feeling well would be one of them. I couldn't get to the gate on time.... anyway when it is done by maybe me, at least someone going to get an upgrade on the second leg.
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Old Aug 22, 23, 12:05 pm
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Originally Posted by Lonedaddy
Agree the industry practice should be disallowed. Just because they all do it doesn't make it right. It certainly cost AA more to fly someone beyond Dallas than just to Dallas. And if they want to price that way ok but don't disallow skiplagging that creates the issue. I could have a ton of reasons to book a flight an not get on it. I wasn't feeling well would be one of them. I couldn't get to the gate on time.... anyway when it is done by maybe me, at least someone going to get an upgrade on the second leg.
There's nothing stopping a competitor from changing their business model to be this way.

If it's really that wrong, no one appears interested in tapping that market.
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Old Aug 22, 23, 1:39 pm
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It's a service, not a good - you pay more for the convenience of a direct flight.
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Old Aug 22, 23, 1:45 pm
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Does Skipllagged have an IATA accredation and issues tickets themselves? That would be VERY risky, so I don't think they do that. Because the airline could just send them an ADM for every 'cheated' booking they ever did, charge them the fare difference on the actual flown segments + ADM fees + revoke the ticketing license.
I'm pretty sure Zaman knows this and therefore doesn't issue any tickets, rather than just redirecting customers to OTAs and then charge a service fee?

From what I understand, AA is also sueing for false advertising, claiming its xx$ cheaper even though its not. So AA could sue skiplagged as competitor for false advertisement, same as LH did with holidaypirates many years ago.
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Old Aug 22, 23, 1:47 pm
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Originally Posted by Antarius
There's nothing stopping a competitor from changing their business model to be this way.

If it's really that wrong, no one appears interested in tapping that market.
It is an industry wide collusion. A court should rule and make skip lagging legal. I wouldn't hold my breath though, as courts tend to be siding with corporations in heavily capitalist countries, like the US.
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Old Aug 22, 23, 2:25 pm
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Originally Posted by nk15
It is an industry wide collusion. A court should rule and make skip lagging legal. I wouldn't hold my breath though, as courts tend to be siding with corporations in heavily capitalist countries, like the US.
I understand they did in Italy and Germany?
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Old Aug 22, 23, 2:26 pm
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Originally Posted by nk15
It is an industry wide collusion. A court should rule and make skip lagging legal. I wouldn't hold my breath though, as courts tend to be siding with corporations in heavily capitalist countries, like the US.
I highly doubt courts are going to get involved here. If courts in far more consumer friendly climates haven't made a change, it's unlikely to happen here or anywhere.

Additionally, I can believe collusion between a handful of companies or powerful interests, not hundreds of airlines globally.

Originally Posted by erik123
I understand they did in Italy and Germany?
They did? The LH case was decided in favor of the passenger, however that was on the subject of LH trying to collect more money later. AFAIK, they didn't rule on whether LH could subsequently kick that passenger out or shut their frequent flyer account down.
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Old Aug 22, 23, 3:03 pm
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As I read the articles on this further, I see AA states that Skiplagged has no authority to issue its tickets. So that answers my question about ARC (or IATA) accreditation.

My hunch is they are selling tickets on their site by way of AA.com. What drew me to that conclusion is from Skiplag's page that leads up to payment. This is where Skiplag notes AA's 800 number for any customer support issues (even though the same page says I am buying the ticket "with" Skiplagged). We all know AA charges a fee to assist travelers with agency issued tickets.

It will be interesting to see if the Texas court cites the same jurisdiction issue as what UA experienced in 2015 with (I believe it was) the Illinois court.
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Old Aug 22, 23, 3:48 pm
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Originally Posted by Lonedaddy
If AA had fair fares this wouldn't be an issue. The like to gouge people at their hubs, which is a monopolistic tactic and should be ruled illegal. If they want to price a ticket from X to DFW to SAT $100 less than X to DFW ok but you can't force a person to go on the next flight. It is exactly like ordering a meal deal and not eating the fries does McDonald's ban you for doing that?
Trying to compare airline service with a goods pricing model is not applicable.

For profit does not price directly on cost to produce. Its price on what market will bear.

Originally Posted by Lonedaddy
Agree the industry practice should be disallowed. Just because they all do it doesn't make it right. It certainly cost AA more to fly someone beyond Dallas than just to Dallas. And if they want to price that way ok but don't disallow skiplagging that creates the issue. I could have a ton of reasons to book a flight an not get on it. I wasn't feeling well would be one of them. I couldn't get to the gate on time.... anyway when it is done by maybe me, at least someone going to get an upgrade on the second leg.
The solution would be raised the fare for XXX-DFW-SAT. Im sure SAT passengers wouldnt be to happy about that and if not enough demand then reduce/cut DFW-SAT.
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