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Flight Centre settles $US14m legal battle with web supplier

Service tender leads to two-year stoush

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Australian discount airline booker Flight Centre has settled a two year legal stoush against its former web services supplier Dublin-based Datalex.

In an ASX statement Flight Centre said, “FLT and Datalex have negotiated in good faith and resolved the proceedings to their mutual satisfaction.”

The settlement covers Flight Centre’s claim against Datalex and Datalex’s counter-claim.

The protracted legal saga dates back to 2009 when Flight Centre filed a claim in the Supreme Court of Queensland against Datalex, alleging misleading and deceptive conduct and breach of contract in relation to a software development contract.

In the original claim Flight Centre argued for more $US14 million in damages.

Datalex’s UK parent company filed a counterclaim for damages arising from Flight Centre’s decision not to deploy its software across the whole travel agency business.

Datalex, a developer and supplier of travel distribution solutions software including internet fare databases and internet booking engines, began an RFP process for a tender in 2005 to supply Flight Centre with an Integrated Travel Solution (ITS). In a complex 53 page claim, Flight Centre had alleged that Datalex had failed to develop, supply and license a number of contractual obligations within given timeframes.

None of the allegations for either party were proven and settlement terms have not been disclosed. ®

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