Czech online travel agency Kiwi.com faces American lawsuit

American Airlines has taken Brno-based travel tech firm Kiwi.com to court, alleging the unauthorized resale of airline tickets. The American carrier claims that Kiwi.com is engaging in the resale of its tickets without a valid contract in place.

American Airlines filed the lawsuit on July 25 in a Texas court, seeking both monetary damages and injunctive relief against Kiwi.com. The legal action was made public through the American non-profit organization Free Law Project, and was first reported locally by E15.cz.

This lawsuit comes after a cooperation agreement between the two companies was terminated three years ago. It accuses Kiwi.com of fraudulent practices, including misrepresenting itself as a United States travel agency authorized to sell tickets for American Airlines flights.

Kiwi.com's unique business model enables users to search for, reserve, and purchase tickets from a range of carriers, including those that the company does not have a direct partnership with.

While this innovative approach has seen the Czech company grow into one of the world's largest online fare aggregators, some airlines have voiced concerns over the legitimacy of such resale practices. In the recently-filed lawsuit, American Airlines alleges that Kiwi.com has been engaging in deceptive practices that adversely affect the airline and its passengers.

Kiwi.com has refrained from making any official statements on the matter so far. Oliver Dlouhý, the company's founder, has historically downplayed accusations of unfair practices, maintaining that their model provides a valuable service to travelers.

This is not the first time Kiwi.com has faced legal challenges over its business practices. In 2021, the company was sued by American carrier Southwest Airlines over trademark infringement and scraping and harvesting data from its website.

A Dallas court issued a preliminary injunction in favor of Southwest, preventing Kiwi.com from reselling Southwest Airlines tickets. The court's ruling highlighted that such unauthorized resale caused tangible harm to the American carrier.

Despite these legal disputes, Kiwi.com has managed to maintain its operations and continue offering its unique travel booking services. However, American Airlines' decision to bring the matter to court reflects the airline industry's ongoing struggle to navigate unconventional business models that challenge established norms.