American Airlines Inc. has accused airfare search engine Skiplagged Inc. of causing $18 million in damages by falsely posing as an authorized agent of the airline. In a Texas trial that began Monday, Skiplagged countered that American’s lawsuit is an attempt to stifle consumer choice rather than protect its trademarks.
Skiplagged Defends Its Business Practices
Skiplagged, known for revealing hidden-city ticketing deals, argued that customers deserve transparency in pricing options, even if airlines dislike those pricing practices. “Skiplagged is doing things that all the airlines don’t condone,” said Aaron Tobin, representing the search engine, during the trial’s opening arguments. He further asserted that the company never claimed to be an official agent of American Airlines, and using the airline’s logo does not amount to trademark infringement.
American Airlines, based in Fort Worth, Texas, filed the lawsuit in August 2022, alleging that Skiplagged misled customers by pretending to sell tickets as an authorized agent, breaching the airline’s terms of service. According to American, Skiplagged encouraged customers to use “skiplagging” practices, where passengers book layovers but don’t complete the second leg of the trip, leaving seats empty and costing the airline revenue.
Arguments Over Trademark Infringement and Confusion
Tobin compared the case to a baseball game, suggesting American Airlines had cleared only the first base of proving Skiplagged’s use of its marks, but was unlikely to succeed in proving the full extent of damages or confusion among customers. “We don’t think that American is going to make it to second base,” Tobin said, emphasizing the statute of limitations had passed for some of American’s claims.
