The Department of Justice announced Thursday that it would launch a “broad public inquiry” into the state of competition in air travel — the government’s second inquiry into the airline industry in just the past two months.
24.10.2024 - 03:13 / skift.com / Abraham Lincoln / Dennis Schaal
A federal jury in Texas decided American Airlines can recover $9.4 million in damages from “hidden city” ticket platform Skiplagged, which continues to offer the airline’s tickets at steep discounts.
On Wednesday, for example, Skiplagged was offering a one-way ticket on American from Washington, D.C. to Philadelphia for just $162 (including a $35 Skiplagged service fee). But the itinerary was actually part of a Washington-Philadelphia-Boston flight. Skiplaggers would simply get off in Philadelphia and “skip” the connection to Boston.
The cheapest fare on American for the same flight was $491. Skiplaggers would save $329.
Airlines hate — and bar — these hidden-city practices because they undercut their fares and disrupt operations.
More than a decade after its founding by a then-20-year-old Amazon software engineer, Aktarer Zaman, Skiplagged has been hauled into court over the years by United, Southwest, and American — and it’s still standing. The United case was dismissed on jurisdictional grounds in 2014, and Skiplagged stopped selling Southwest flights in 2021 after reaching a settlement with the airline.
Testimony during the American litigation in Fort Worth revealed that Skiplagged does more than $20 million in annual revenue. The New York-based company has 20 employees.
Zaman is still the CEO, and the chief operating officer is Dan Gellert, the co-founder and former CEO of the GateGuru app, which was acquired by Tripadvisor in 2013.
The judge in the American lawsuit, Mark Pittman, disparaged Skiplagged’s business practices throughout his opinion [embedded below], and noted it has “made a killing” off hidden-city airline tickets.
At one point, he compared Skiplagged to a skunk.
“Abraham Lincoln observed ‘[w]hat kills a skunk is the publicity it gives itself…’ Here, American got wind of Skiplagged’s stinky business practices, but it waited a little too long to extinguish the stench via certain claims,” the judge wrote. “Fortunately for American, those are not the only tools at its disposal.”
The jury’s verdict on October 15 was that the airline could recover $9.4 million for copyright infringement, although the precise amount will be subject to the judge’s approval in coming weeks.
In late July, when the judge decided that Skiplagged was guilty of copyright infringement in using American’s flight symbol, he also decided that Skiplagged did not breach the airline’s user agreement, in part because the statute of limitations had run out for American to make that claim.
On the question of trademark infringement, the judge left that to the jury, which decided that Skiplagged’s use of American’s trademarks was covered as a nominative fair use. In the interim, Skiplagged dropped the use of the
The Department of Justice announced Thursday that it would launch a “broad public inquiry” into the state of competition in air travel — the government’s second inquiry into the airline industry in just the past two months.
Spirit Airlines said Thursday that it entered a commitment to sell 23 Airbus A320s and A321s in a deal valued at approximately $519 million as it looks for ways to shore up its liquidity.
American Airlines reported a loss of $149 million for the third quarter as it continues to deal with the fall out of its distribution strategy.
One of my biggest pet peeves when I am flying is people who cannot follow the rules when it comes to boarding (and disembarking, for that matter). I was thrilled to see that American Airlines is on my side and is testing a new boarding process technology that will crack down on people who try to board earlier than their assigned boarding group.
The Biden administration is slapping American Airlines with a record-setting punishment, criticizing the carrier's treatment of passengers who use wheelchairs for mobility devices — and their essential equipment.
Saying that American Airlines mistreated disabled air travelers who use wheelchairs, the U.S. Transportation Department on Wednesday announced a $50 million fine against the carrier. Transportation Secretary Pete Buttigieg called the agency’s penalty the highest ever levied against an airline for violating protections for fliers with disabilities.
The Department of Transportation announced Wednesday that it would fine American Airlines $50 million for “numerous serious violations of the laws” that protect passengers with disabilities.
Skiplagged.com said it will still offer customers a way to book a popular travel hack despite a court partly siding with an airline in a lawsuit against the company.
If you hold elite status with Delta Air Lines, United Airlines or Southwest Airlines, American Airlines is offering to match your status for at least four months so you can earn status in a different loyalty program without having to start from scratch.
Have some extra American Airlines AAdvantage miles to spare?
American Airlines is testing a new system to make sure travelers board with their designated groups.
Spirit Airlines said Friday it had entered into an agreement to extend the deadline to refinance some of its debt.