AA and Delta discontinue interlining

[RooFlyer]

As reported on OMAAT:

American Airlines and Delta Air Lines are ending their interline agreement that allows them to sell tickets on each other’s flights as of Tuesday.

“We have been unable to come to terms on an agreement with Delta and, as a result, have mutually agreed to end our interline agreement effective Sept. 15,” American spokesman Casey Norton said Thursday evening. “From that date, neither airline will offer interline services to each other, including the ability to rebook passengers at discounted rates on the other carrier when flight disruptions occur.”

I wasn't aware that this was a key part of 'interlining' - thinking it mainly referred to baggage handling.

From the same source:

So what’s the real [reason] for the interline agreement being discontinued? An internal memo sent out to American employees has an explanation:

One tool that we use to help get customers back on their way during irregular operations are the interline agreements we have with various carriers that allow us to reaccommodate passengers on other airlines at a negotiated rate. These agreements also allow airlines to book, sell, ticket, and check baggage on one another. Interline agreements are common across the industry and they generally include a standard, discounted rate for calculating how much is owed by one carrier to another to use their seats during irregular operations.

In April of this year, participating airlines across the industry agreed to new rates for moving customers between carriers during irregular operations. Delta recently decided to go outside of that joint agreement and negotiate an individual agreement with American. We have been unable to come to terms on an agreement with Delta and, as a result, have mutually agreed to end our interline agreement effective September 15. From that date, neither airline will offer interline services to each other, including the ability to rebook passengers at discounted rates on the other carrier when flight disruptions occur. (Note that we will continue to honor valid tickets already purchased on or before September 14 through the existing interline agreement, so there will be no changes there.)
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[MEL_Traveller]

This is a worrying trend if it extends across airlines in the states.

Previously there has been great flexibility in the event of IRROPS... UA may end up sending you on AA or DL for example. If others follow DL's lead it will mean you'll be limited to a single carrier (or perhaps alliance) in the future.