Flight Centre has launched legal action against a software developer for failing to provide an internet fare database, booking engine and agent sales tool.
Documents filed in the Queensland Supreme Court show the company is suing development agency Datalex for misleading or deceptive content.
Flight Centre hired the company in 2005 to create a booking engine and several databases, with Datalex’s proposal stat that it was “confident with our… proven product suite and industry expertise that we can deliver a solution to meet Flight Centre’s… business requirements”.
Datalex allegedly said its products had already been used by agencies including American Express, Trailfinders and Thomas Cook, but Flight Centre now alleges the company had no such products.
Flight Centre terminated the contract earlier this month. It is suing for $US5.3 million, the amount it paid to Datalex, and $9.35 million in “wasted expenditure”.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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