8/10/2006

How Stupid Can Worldspan be?

It is going to end in tears….

Expedia sues Worldspan over multiple GDS issue (08/09/2006)

By Dennis Schaal

Expedia Inc. took Worldspan to court, alleging that Worldspan is trying to block Expedia from using data from other GDSs. The complaint, filed July 26 in Superior Court, King County, Wash., came about a week before Sabre announced that it began providing some GDS services to Expedia. Worldspan and Expedia signed a marketing and service agreement in 1995 that has been amended 10 times since. Until 2006, Worldspan had been Expedia’s sole GDS provider. But Expedia.com recently began using Sabre, too, and some of Expedia Inc.’s international divisions have supplemented Worldspan service by using Amadeus for GDS services. In its litigation, Expedia Inc. seeks a declaratory judgment to determine whether Expedia’s use of GDS data from providers other than Worldspan violates the Expedia-Worldspan agreement. And, if the court finds that Expedia is exercising its lawful rights, then Expedia seeks to permanently enjoin Worldspan from representing to airlines and other GDSs that Expedia is violating Worldspan’s data rights. “Worldspan has indicated that it seeks to interfere with Expedia’s relations and contracts with airlines and other CRSs if it does not accede to Worldspan’s position,” Expedia alleges. “Worldspan, for example, has threatened to advise Expedia’s business partners -- e.g. airlines and other CRSs, including Sabre -- that Expedia would be in violation of Worldspan’s data rights by presenting to customers flight itinerary information and options obtained from more than one CRS.” Expedia also seeks damages and attorneys’ fees. Worldspan declined to comment on the Expedia complaint, citing its policy not to comment on pending litigation. Expedia alleges that Worldspan claims that Worldspan data is being used by Expedia.com in connection with bookings on another GDS, presumably Sabre. Like Expedia, Priceline has diversified its GDS providers beyond Worldspan as a hedge against content fragmentation and recently began using Sabre for some bookings. Priceline also has a services agreement with G2 SwitchWorks. It is unknown whether Priceline and Worldspan, too, have a dispute about Priceline branching out to use other GDSs. Priceline declined to comment, but did say Aug. 9 that it has not sued Worldspan.

Timothy J O'Neil-Dunne
Managing Partner - T2Impact Ltd
Global Travel eBusiness
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