Credit FAQ: The Fee Dispute Between American Airlines Inc. And Travel Distributors Could Change Travel Distributors' Business Models Jan 11
Standard & Poors, January 2011
Abstract
On Dec. 21, 2010, American Airlines Inc. (American; B-/Stable/--), the major operating subsidiary of AMR Corp. (B-/Stable/--), discontinued selling its tickets through online travel distributor (OTA) Orbitz Worldwide Inc. (Orbitz; B/Stable/--). The airline cited its desire to use its own system called Direct Connect, which would enable it to provide not just its fares, but also other service options directly to OTAs. This would result in lower costs to the airline by eliminating the "middlemen" global distribution systems (GDSs) such as Travelport LLC (B-/Stable/--), which also owns directly and indirectly a controlling stake in Orbitz. (Watch related CreditMatters TV segment, "American Airlines' Push To Change Travel Distribution For Airlines And Distributors: The Credit Implications," dated Feb. 3, 2011.) On Jan....
Companies mentioned in this report are:
- AMR Corp.
- American Airlines Inc.
- Delta Air Lines Inc.
- Northwest Airlines Inc.
- Southwest Airlines Co.
- Trans World Airlines Inc.
- United Air Lines Inc.
- United Continental Holdings Inc.
- Priceline.com Inc.
- Sabre Holdings Corp.
- JetBlue Airways Corp.
- Expedia Inc.
- Orbitz Worldwide Inc.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
- AMR Corp.
- American Airlines Inc.
- Delta Air Lines Inc.
- Northwest Airlines Inc.
- Southwest Airlines Co.
- Trans World Airlines Inc.
- United Air Lines Inc.
- United Continental Holdings Inc.
- Priceline.com Inc.
- Sabre Holdings Corp.
- JetBlue Airways Corp.
- Expedia Inc.
- Orbitz Worldwide Inc.
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