Quick dispute resolution between Orbitz Worldwide, Inc. (NYSE:OWW) and American Airlines Group Inc (NASDAQ:AAL) has set the former’s shares rise a nearly 3%, reported CNBC‘s Susan Li. The dispute was about the booking fees or in other words the amount Orbitz Worldwide, Inc. (NYSE:OWW) charges American Airlines to list and sell its flights. It is very important for American Airlines Group Inc (NASDAQ:AAL) to stay competitive and at the same time remain profitable and it seems that Orbitz Worldwide, Inc. (NYSE:OWW) wasn’t exactly being helpful in achieving the right balance.
“Orbitz.com actually physically removed their booking access in American Airlines Group Inc. (Nasdaq:AAL) into Us Airways,” said Li as she explained the nature of the conflict that started earlier last week.
However, things have taken a turn and according to Li, American Airlines Group Inc (NASDAQ:AAL) released a statement saying that, “now those who go to the website orbitz.com can book the seats on American Airlines Group Inc. (Nasdaq:AAL) and US Airways as well.”
The stock of American Airlines saw this 3% pop just before the market close as the markets welcomed this news and today continued to trade in green, gaining around 1.80%. Orbitz Worldwide, Inc. (NYSE:OWW) is an online travel company, which mainly sells through companies such as CheapTickets, ebookers, and RatestoGo. For this kind of business, further continuation of the dispute would have significant impact on Orbitz Worldwide, Inc. (NYSE:OWW)’s revenues as American Airlines Group Inc (NASDAQ:AAL) is one of the world’s largest airlines both in terms of revenue and passengers carried. This quick resolution has definitely earned the management a few plus points.
The matter can now be deemed as resolved and both companies can move on, much to the delight of the investor community, especially those who could cash in on this auspicious news. Moreover, the consumers seem to be in a better situation as well as fewer airlines means less competition and higher prices.
Israel Englander‘s Millennium Management is a shareholder of Orbitz Worldwide, Inc. (NYSE:OWW), holding around 610,600 shares as of the end of the second quarter of the year.
Disclosure: none
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