American Airlines has filed a lawsuit against Skiplagged Inc., an online travel agency that has recently grown in popularity for its cheap tickets. However, the airline alleges that the agency is deceiving customers.
The lawsuit was filed Thursday in the U.S. District Court for the Northern District of Texas. In the suit, American Airlines claims that Skiplagged “deceives the public” as it claims it sells valid tickets, despite not having the authority to “form and issue a contract” on behalf of the airline.
The suit says that Skiplagged has acted as an agent of American Airlines, even though it is not authorized to be an agent for the airline.
“[Skiplagged] employs unauthorized and deceptive ticketing practices, entices customers to participate in this deceptive ticketing practices by promising savings, and then doesn’t deliver,” the suit said.
American Airlines also claimed that Skiplagged deceives its customers into thinking they are buying their tickets in the form of a “loophole.” However, the suit says that many of the fares on the company’s website are actually higher than if passengers booked through American’s website.
“It is the classic bait and switch: draw customers in with the promise of secret fares, and instead sell the consumer a ticket at a higher price,” the suit said.
The lawsuit claims that Skiplagged tells customers to hide their activity from the airline, as it also “hides its activity.”
Skiplagging is a practice where travelers book a flight with at least one stop and then leave the plane during the layover. The practice is not generally illegal, but airlines claim it violates their policies.
The suit says that Skiplagged works as the ticket buyer in its transactions, which is a violation of the airline’s contractual terms of use.
American Airlines shared a statement about the suit with The Hill, saying that skiplagging is also known as hidden city ticketing, which can lead to checked baggage issues and prevent other passengers from booking seats when in urgent need.
“Intentionally creating an empty seat that could have been used by another customer or team member is an all-around bad outcome,” the company wrote.
Overall, the airline is asking that Skiplagged be prohibited from publishing content relating to its flights, selling or reselling its flight tickets, acting as an agent of American, using its trademarks and copyrights, and accessing its website for commercial use.
As long as Skiplagged is allowed to continue its operations, American Airlines says it will “continue to lose control over its own reputation and goodwill.”
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