Big 5: American joins 'T2' Web site

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CHICAGO -- American will become the fifth airline owner of the "T2" Web site that agent groups already have called an anticompetitive attempt to control the sale of tickets over the Internet.

The addition of American means all of the five biggest U.S. airlines will have an equity stake in the company, whose founding members were Continental, Delta, Northwest and United.

"Customers increasingly want to use the Web, and they want to see all the options in one place, no matter which airline is involved," said Mike Gunn, American's executive vice president for marketing and planning. "We need to provide those customers what they want, and we believe doing so will prove to be a good e-commerce investment for American."

Agency organizations, however, said American's addition to the ownership group bolsters their arguments against the joint venture in spite of the airlines' claims the online agency will operate as an independent company with separate management.

"This further illustrates what we have been saying all along," said Paul Ruden, ASTA staff senior vice president for industry affairs. "We now have 60% of the domestic capacity represented by the equity owners. We think this whole project is bad for consumers and this doesn't make it any better."

ASTA has filed a complaint with the Transportation Department over the airlines' planned Web site and "will continue [its] efforts to inform the government of our view of this situation and seek appropriate intervention," Ruden said.

John Hawks, president of ARTA, which filed a separate complaint with the DOT, said "Now there are no major players of any consequence outside the loop. This just adds fuel to fire. All of the [airlines'] wagons are circled."

The joint-airline Web site, scheduled to launch this summer, is billing itself as a "new online travel agency" covering not only airlines, but also products and services from hotels, car rental companies, cruise lines, vacation packagers and other travel suppliers worldwide.

For airlines, the site is promising it will scout all fares using an unbiased search engine "without regard to whether an airline is an owner of the site, a non-equity participant or neither."

Internet-only fares, however, will be posted only for the owners and 30-plus carriers that have signed letters of intent to become charter associates.

Equity owners and charter associates, the new online agency said, can continue operating their respective Web sites and participate in other on-line and traditional distribution channels.

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