Continental Gets OK to Sue 2 Rivals on Racketeering Claim

Continental Airlines Inc. said Thursday that a Los Angeles federal court has agreed to let it proceed to trial with a $1-billion racketeering claim against American and United airlines involving their computer reservation systems.

Continental said U.S. District Judge Edward Rafeedie denied motions from the other two airlines to dismiss the charges. Continental has complained under the Racketeer Influenced and Corrupt Organizations Act (RICO) that American and United have committed mail and wire fraud in the operation of their ticket reservation systems. American operates the Sabre reservation system; United operates the Apollo system.

American said Continental’s contention that it has engaged in racketeering “is a moral outrage.” United representatives could not be reached for comment.

Continental said the focus of its suit is the “manipulation by American and United of information on their Sabre and Apollo computer reservations systems,” which are used in more than 70% of ticket sales by travel agents. Claims in the Continental suit include charges that the reservation system screens display the operators’ flights first and suppress the fares and schedules of competitors.

A Continental spokesman in Houston said that even though the federal court ruling was made on Feb. 17, it did not get the court transcript until Thursday.