The ceasefire between American Airlines and GDS giant Sabre signals an “all quiet” moment on the front lines of the online travel wars we have been covering. The announcement that the two companies would attempt to resolve their differences out of court, at least until June 1st, calmed the churning business cauldron for online travel for some.
The Justice Department stands poised to nix Google’s acquisition of ITA proprietary software as FairSearch and other entities press the issue. Is Google becoming a monopoly? This is the overriding question on the minds of consumers, but what is on the government’s mind, this is what counts. With American Airlines’ recent ITA deal, exactly how will the Justice Department deal with the immense pressures being leveled? This online travel war is a far bigger confrontation than many realize.
American Airlines and ITA penned a deal the other day which AA claims had nothing to do with Google’s acquisition of ITA technology. But the suggestion still remains as to what exactly Google is doing to fend off its opponents in the so called “Online Travel War.” Is Google silently orchestrating the downfall of Expedia and the others of FairSearch? Well, probably not anything so diabolical, but winning the ITA acquisition with underlying business relationships? This is not only possible, but probable.
In a transparent move to block yet another Google business move, Microsoft joins the scaredy cats at FairSearch. Like a ravenous whining hyena, Microsoft once again nips at the heels of the Internet’s most profitable and powerful company.
Recent developments in online travel highlight the immense power the Internet has on traditional structures. Google’s ITA software deal is now the subject or power strokes in Washington. As Microsoft, Kayak, and Sabre vie for Senatorial support, Obama’s Attorney General select focus scrutiny on the deal.