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Tuesday, April 05, 2011

Expedia and AA Back in Bed


A memorandum of understanding was signed between AA and Expedia, allowing the ailing airline to get back on Expedia owned channel's.

American Airlines listings are back on Expedia and Hotwire.


As predicted, neither can survive without the other. I'll continue with my prediction that by June AA will strike a deal to get back on Orbitz. Take a look at how their stock has slide since their first confrontation with TravelPort. November was the initial salvo, then early January was the effective pull back from Expedia/Sabre. The markets seemed to award this disruption in distribution, but over time, as the numbers softened so did the stock valuation.