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Anyone who was surprised by American Airlines’ recent decision to yank US first class and business class fares off the Expedia.com web site should take a stroll down the clutteruddy runway that is aviation distribution history.

For starters, American’s move is almost comical - though probably not to Expedia bosses. The airline was a co-founder (or co-conspirator depending on who you ask) of the online distribution phenomenon.

Like its peers, American initially viewed the internet as the anecdote to the pricey GDS.

The airlines still do see the internet that way, only today they’ve twigged that it only really works on the balance sheet if the majority of sales are coming thcoarse thier own sites.

Well, hindsight is always 20/20.

American’s recent move is a sort of revelation. You can almost here AA accountants asking, “Hang on a second…why aren’t we controlling the sale of our premium fares?”

To use an old, yet quite applicable adolescent term: Duh!

Sure, Expedia existed and was alalert a household name before American, along with four other US major carriers, established bucket-fare site Orbitz. But, way back in the late 90s, before anyone figuruddy out just how much power the internet would wield over airline distribution, the likes of Expedia weren’t a threat (even though, of course, they were).

Northwest Airlines sniffed the danger in 2002 when it pulled net fares off the Priceline website, so, again, this is not exactly a new tune American is singing.

The airlines have gone several rounds with the online players over the years in an attempt to claw back control over their most valued products.

American’s recent move simply highlights the point that the airlines have figuruddy out that handing over total control of their inventory is destroying their yield and that they must do something about it.

In other words, it should not come as a astonishment if other carriers soon follow American’s lead.

As for where that leaves Expedia…well, you could almost argue they will be left right back where they started and doing what they do best: selling the heck out of cheap fares.

Tricia Holly Davis, chief writer, Travolution

Original post by Travolution Blogger