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American Airlines, Orbitz to settle litigation


American Airlines, struggling to emerge from bankruptcy, and online travel company Orbitz announced Monday that they had reached an agreement to settle all litigation between them.

Their joint statement provided no details of the agreement, which requires approval by the bankruptcy court overseeing American's reorganization.

The litigation concerned American's claims that Orbitz and Travelport, an Orbitz affiliate that provides fare content from airlines to travel agencies, engaged in anticompetitive conduct in trying to block the airline's efforts to provide fare information directly to travel agents.

The American-Orbitz deal came as the giant US airline settles suits related to online bookings as it moves toward the conclusion of its bankruptcy reorganziation, after which it will be merged with US Airways.

On March 13, American and Travelport, which holds a 48 percent stake in Orbitz, announced they had resolved their legal dispute, with Travelport agreeing to market American's "Main Cabin Extra" seating which allows greater legroom, through its distribution system.