Judge Rejects Texas Air’s Suit Against United

A federal judge in New York has thrown out Texas Air Corp.’s lawsuit against United Airlines’ computer reservation system.

U.S. District Judge Milton Pollack said Texas Air failed to show that United’s contracts with travel agents restricted competition. Pollack also said Texas Air did not provide evidence to support its contention that United monopolized markets in 12 U.S. cities, including Denver, Honolulu, Reno and Seattle.

A spokesman for Texas Air could not be reached for comment.

In addition, Pollack ordered 21 travel agencies that had dropped United’s Apollo reservation system in favor of Texas Air’s competing System One to pay United $2 million in damages for breaking their contracts with United.

Pollack’s ruling also affects another, similar suit involving 40 travel agencies. Those agencies must pay United $4.2 million in damages, said Stephen P. Sawyer, United’s assistant general counsel.

United sued the travel agencies for damages after they switched to System One. Under the agencies’ contracts with System One, Texas Air agreed to defend the agencies in any suit brought by United.

Texas Air, the parent of Continental Airlines and Eastern Airlines, had alleged that United’s contracts were unenforceable because they violated antitrust laws.

Besides the New York suit, Continental has filed suit against United and American Airlines in federal court in Los Angeles, charging that the contracts that United and American have with travel agents restrict competition. That case is pending.