Orbitz to fight suit by car rental companies Alamo, National

Email|Print|Single Page| Text size – + By Adam Schreck

AP Business Writer / April 28, 2008

NEW YORK—Orbitz Worldwide Inc. on Monday vowed to defend itself against a legal challenge by Alamo Rent A Car and National Car Rental accusing the online travel company of breaking a contract involving car rental listings.

In a lawsuit filed Friday in the Circuit Court of Cook County, Ill., the car rental companies allege Orbitz "inappropriately demanded" a $1.5 million payment not required by a listing agreement which runs through the end of the year.

After the rental companies refused to pay the fee, Orbitz removed the brands from its main rental car matrix, which allows customers to compare companies side-by-side, Alamo and National said. Customers who click a link can see Alamo and National listings in an extended version of the grid, however, and the companies' offers continue to appear elsewhere on Orbitz sites.

The car rental companies are accusing Orbitz of "breach of contract, intentional interference with prospective business relationships, consumer deception, deceptive trade practices and unfair competition."

Alamo and National are operated by Vanguard Car Rental USA Inc., which was acquired by privately held Enterprise Rent-A-Car Co. of St. Louis last year.

Vanguard estimated the move will cost Alamo more than $27 million in lost revenue through the end of the year. It did not provide a similar figure for National but said in court documents that it expects a similar drop-off in bookings.

Orbitz spokesman Brian Hoyt called the lawsuit "baseless." The Chicago-based travel company said Vanguard "is apparently upset with the way that Orbitz sorts its search results," and wants them sorted in a way that would detract from other companies' reservations. It vowed to "vigorously defend" itself and said it is confident the court will rule in its favor.

"The bottom line is that Vanguard is trying to use a lawsuit to get a sorting result from Orbitz that Vanguard and Orbitz did not agree to. In short, Vanguard is trying to use its lawsuit to get something for nothing," Orbitz said in a statement.

Alamo and National are asking the court to force Orbitz to restore their listings alongside other companies' in the rental car matrix. They are also seeking performance and punitive damages, as well as lawyers' fees.

Orbitz shares fell 23 cents, or 3.2 percent, to $7.01 in late morning trading.