Why was Skiplagged sued?

Why Was Skiplagged Sued?

Skiplagged, a travel website that allowed users to exploit loopholes in airline pricing, faced a lawsuit from American Airlines in 2017. The airline alleged that Skiplagged's practices were deceptive, damaging to the brand, and unauthorized.

Alleged Deceptive Ticket Sales

American Airlines accused Skiplagged of deceiving customers by promoting hidden-city ticketing. This practice involved booking a flight with a layover at the desired destination but only intending to travel to the layover city. By purchasing the connecting flight instead of a direct flight, users could save significant money.

American Airlines claimed that Skiplagged's website misled customers into thinking they were booking direct flights, when in fact, they were purchasing connecting flights with no intention of completing the entire itinerary. This, according to the airline, was a violation of its contract of carriage and deceptive trade practices.

Brand Damage

American Airlines further alleged that Skiplagged's practices damaged its brand reputation. The airline argued that Skiplagged's exploitation of loopholes undermined the trust between the airline and its customers. American Airlines claimed that customers who discovered that they had been misled by Skiplagged would associate negative experiences with the airline.

Unauthorized Distribution Practices

In addition, American Airlines accused Skiplagged of engaging in unauthorized distribution practices. The airline alleged that Skiplagged accessed and distributed American Airlines' flight data without permission. This data included real-time availability and pricing information, which Skiplagged used to create its hidden-city ticketing tool.

American Airlines claimed that these practices violated its intellectual property rights and unauthorized access laws. The airline argued that Skiplagged was profiting from its data without compensating American Airlines.

Legal Outcome

The lawsuit against Skiplagged was eventually settled out of court. The details of the settlement are confidential, but it is believed that Skiplagged agreed to modify its business practices to address American Airlines' concerns.

The settlement has had a significant impact on hidden-city ticketing. While the practice is still possible, it is more difficult to find and book loopholes due to changes implemented by airlines and online travel agencies.