FORT WORTH - American Airlines has filed suit against U.S.A. Gateway (GTT Travel) for allegedly engaging in prohibited ticketing practices.
The suit was filed July 26 in the U.S. District Court for Northern Texas, Fort Worth Division, and accuses GTT of breach of contract, trademark infringement, unfair competition, and dilution.
According to the complaint, American Airlines discovered that GTT and its sub-agents have been overcharging consumers, hiding charges from consumers, and actively engaging in prohibited ticketing practices, all of which are well outside the scope of authority American has granted them.
“These actions violate numerous clauses of GTT’s contracts with American, and also constitute federal trademark infringement, false designation of origin, and dilution,” the suit states. GTT profits from these schemes in several ways.
“First, GTT’s sub-agents are diverting consumers who wish to contact American directly, by tricking consumers into calling the wrong phone number.
“Second, GTT and its sub-agents inflate the actual cost of the ticket, charging the consumer more than the actual ticket price. GTT and its sub-agents pocket the difference.
“Third, GTT and its sub-agents use prohibited practices (i.e., ‘hidden city’ ticketing) to lower the cost of the ticket, but do not pass this lower cost on to the consumer. GTT and its subagents again pocket the difference.”
American Airlines seeks to be fairly compensated for its damages and requests the court find that GTT has unlawfully infringed upon the American Marks, engaged in unfair competition, all in violation of the Lanham Act.
The Fort Worth law firm of Kelly Hart & Hallman represents the airline.
Case No. 4:23-cv-00781-O