Carnival Plc v. Virgin Atlantic Airways

MEMORANDUM

Carnival PLC (“Carnival”) challenges the district court’s denial of its motion to enforce settlement agreements. For the reasons set forth in the following order, we affirm the district court’s judgment.

I

Carnival, a provider of cruise vacations, offers, among other options, vacation packages that include air travel to and from port cities. Carnival is able to offer all-inclusive packages because it has contracted with British Airways PLC (“BA”) and Virgin Atlantic Airways, Ltd. (“VAA”) (collectively “the Airlines”). Specifically, an Inclusive Tours Contract (“ITC”) allows Carnival to reserve fares from BA for sale to Carnival’s customers as part of a vacation package. Under the ITC, Carnival is liable for all taxes, fees and charges, and it must use BA’s electronic reservation system for booking tickets — the same system employed by travel agents. Under a Commitment Agreement, Carnival may request an allocation of seats for its customers on certain BA flights. Carnival may • cancel all or some of the seat allocation up to a certain date; after that date, it becomes liable to BA for a penalty based on the number of seats held. When Carnival reserves a seat, it must…