Continental Airlines, Inc. v. Mundo Travel Corp.

ORDER GRANTING IN PART AND DENYING IN PART DEFENDANTS’ MOTION TO DISMISS PLAINTIFF’S COMPLAINT PURSUANT TO FED. R. CIV. P. 12(b)(6) AND DIRECTING PLAINTIFF TO FILE AN AMENDED COMPLAINT.

On December 12, 2005, the Court heard Defendants’ Motion to Dismiss Plaintiffs Complaint Pursuant to Fed.R.Civ.P. 12(b)(6) (the “Motion”). Upon due consideration of the written and oral arguments of the parties and the record herein, the Court GRANTS the Motion in part and DENIES it in part.

I. Factual Background

Plaintiff Continental Airlines (“Continental”) is a member of a consortium of domestic air carriers called the Airlines Reporting Corporation (the “ARC”), headquartered in Arlington, Virginia. ARC formed in 1984 to function as a clearinghouse and a collection agent for transactions between airlines and travel agents who sell their services.

Continental, along with other airlines, has signed an ARC Carrier Services Agreement that gives ARC power of attorney to enter into contracts with travel agents on Continental’s behalf. Travel agents wishing to issue Continental tickets through the ARC must execute a “Memorandum of Agreement to the Airlines Re porting Corporation Agent Reporting…