American Airlines 2012 Annual Report Download - page 34

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On December 22, 2011, Travelport brought counterclaims against American alleging that American's direct connect efforts violate the antitrust laws by
preserving American's monopoly power on certain city pairs, and asking for permanent injunctive relief and unspecified monetary damages and fees and
expenses.On February 21, 2012, American moved to dismiss these claims. On August 16, 2012, the court granted American's motion to dismiss Travelport
counterclaims. On February 5, 2013, Travelport filed a motion for reconsideration of the court's August 16, 2012 order granting American's motion to
dismiss and to amend its counterclaims to assert a new claim against American. The proposed new counterclaim alleges that American participated in a
conspiracy with rival airlines and Farelogix (a technology provider to American) to reduce and eliminate competition from Travelport and other GDSs and to
coordinate their negotiations with Travelport and other GDSs. Based on this new proposed counterclaim, Travelport seeks: (1) a decree that American
violated, and threatens to continue violating, 15 U.S.C. ยง 1; (2) a permanent injunction prohibiting American from conspiring with rival airlines regarding
direct connects, distribution strategy, or on negotiations with GDSs; (3) a permanent injunction requiring American to provides its fare information to
Travelport and prohibiting American from terminating a travel agency's ticketing authority, denying a travel agency access to American's fare information, or
taking any other punitive action against a travel agency because it chooses to use Travelport instead of American's direct connect; (4) an award of three times
Travelport's actual damages; and (5) an award of all costs in the action, including attorneys' fees and interest. Travelport does not specify the amount of its
actual damages.
American's claims against Sabre in this lawsuit have been resolved pursuant to the October 30, 2012 settlement agreement. American intends to vigorously
pursue its remaining claims against Travelport and Orbitz, which are not stayed by our Chapter 11 filing.
The Company is engaged in other legal proceedings from time to time. Such proceedings can be complex and take many months, or even years, to reach
resolution, with the final outcome being dependent upon a number of variables, some of which are not within the control of the Company. Therefore, although
the Company will vigorously defend itself in each of the described actions, the ultimate resolution and potential financial impact on the Company is uncertain.
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