Courthouse News Service reports a jury awarded American $9.4 million in damages from Skiplagged over earned revenues and copyright infringement.
American Argues Flyers Deceived by Skiplagged Site
In arguments to the jury, American’s attorneys argued that the website – which helps flyers find “hidden city” tickets to save money on flights – effectively deceived flyers to think they are using a legitimate online travel agency. The lawyers said Skiplagged earned over $90 million while using American’s brand illegitimately, while hurting the airline’s bottom line.
“Skiplagged says it is like Expedia, but it offers no real service,” American attorney Paul Yetter said in opening arguments, as quoted by Courthouse News Service. “If a customer complains, Skiplagged shrugs it’s shoulders.”
In its defense, lawyers representing Skiplagged told the story of founder Aktarer Zaman, who left a job at Amazon to grow the free service at his website. “Skiplagging” consists of purchasing a flight towards a final destination but instead leaving at the connecting city. Through the practice, flyers could save money compared to what it would cost to fly to their intended destination.
Although the practice of skiplagging is not illegal, the contract of carriage for most airlines prohibits the practice. Flyers have reported being charged the full fare when caught skiplagging, or even getting banned from flying when attempting the strategy. During the trial, lawyers for American accused Skiplagged of selling fares which broke the contract of carriage and subjected flyers to penalties, including having their flights cancelled entirely.
In their finding, the jury awarded American $4.7 million from Skiplagged’s revenues, and another $4.7 million for copyright infringement. The jury did not specify any damages for trademark infringement, which was at the core of American’s case.
Attorneys for Skiplagged did not immediately indicate if they would appeal the decision.
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Source: frugal travel guy