Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Is Orbitz Un-American?

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Just when you thought that the months-long battle between air carriers and travel portals was coming to an end, in come the legal eagles.

American Airlines parent AMR (NYSE: AMR  ) is filing a civil antitrust lawsuit against Travelport and Orbitz Worldwide (NYSE: OWW  ) , hoping to recover monetary damages from the harm caused when the booking specialists booted AMR flights from their sites four months ago.

Orbitz obviously begs to differ. It points out that AMR decided to pull its fares from It consider the "baseless" lawsuit "the latest in a series of tactics to force Orbitz to adopt an airline ticket distribution model that limits consumer choice and inhibits competition."

See the overhead seatbelt sign that just illuminated? Buckle up. Things are about to get bumpy.

Expedia (Nasdaq: EXPE  ) didn't have a direct beef with AMR, but it still pulled American and American Eagle fares off its portal at the time, in solidarity with its peers. AMR and Expedia made nice last week, but apparently, that didn't pave the way for an industrywide truce.

If portals provide fewer choices, consumers stand to lose the most. But both parties in this dispute could also suffer from its consequences.

Orbitz  now trades at a fraction of its 2007 IPO price of $15 a share. While the company started out posting losses, it's occasionally profitable these days. However, it has failed to keep up with the revenue growth pace of larger rivals (Nasdaq: PCLN  ) and Expedia. Even travel deals publisher Travelzoo (Nasdaq: TZOO  ) now commands a larger market cap than Orbitz.

AMR hasn't had it easy, either. In addition to legacy carriers' well-documented shortcomings, airlines are now staring at skyrocketing fuel prices that they may not be able to entirely pass off to its passengers.

In short, rather than trading blows, these two bloodied companies should be working together for their mutual benefit. There's already enough turbulence without Orbitz and American's fisticuffs.

Who do you think is right in this battle? Share your thoughts in the comment box below. is a Motley Fool Stock Advisor selection. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.

Longtime Fool contributor Rick Munarriz has been leaning on travel websites since the 1990s. He does not own shares in any of the companies mentioned in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.

Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1474947, ~/Articles/ArticleHandler.aspx, 10/25/2016 1:39:14 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,188.17 -34.86 -0.19%
S&P 500 2,144.61 -6.72 -0.31%
NASD 5,285.31 -24.52 -0.46%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
AAMRQ.DL $0.00 Down +0.00 +0.00%
OWW.DL $0.00 Down +0.00 +0.00%
Orbitz Worldwide CAPS Rating: *
EXPE $127.82 Up +0.13 +0.10%
Expedia CAPS Rating: ***
PCLN $1478.91 Up +7.11 +0.48%
Priceline Group CAPS Rating: ****
TZOO $12.13 Up +0.03 +0.21%
Travelzoo CAPS Rating: **