Category: Airline claims against travel agents

ARC lawsuit not impacted by alleged fraudsters’ motion to dismiss

June 14, 2017

Airlines Reporting Corporation v. Begator Hila, Elvira Ejupi and Albania Travel & Tour, Inc. et al. (E.D.N.Y. May 31, 2017).  In its Amended Complaint, ARC alleged that Hila and Ejupi, through Albania Travel, defrauded ARC of over $249,000 through a ticket exchange scheme.  Hila was the president and sole owner of Albania Travel; Ejupi ran … More ARC lawsuit not impacted by alleged fraudsters’ motion to dismiss

ARC case ends up where it started after excursion through federal court

November 4, 2011

Airlines Reporting Corporation v. Sudbury Travel, Ltd. (E.D.V.A. Sept. 28, 2011).  In 2009, ARC initiated an arbitration before the Travel Agent Arbiter seeking amounts owed by accredited agent Sudbury Travel, Ltd.  Less than three weeks later, ARC withdrew its arbitration complaint.  In his dismissal notice, the Arbiter noted that the applicable rule allowed such withdrawal … More ARC case ends up where it started after excursion through federal court

The Computer Fraud and Abuse Act: revenue protection weapon for airlines

December 5, 2010

Note:  This post is an abridged version of the article I wrote for the Autumn 2010 issue of Issues in Aviation Law and Policy, which is published by the International Aviation Law Institute of DePaul University College of Law.  Click here for the full version. Until the last few years, airlines sustained significant revenue losses from “bust-outs” … More The Computer Fraud and Abuse Act: revenue protection weapon for airlines

Long-pending ARC case against agency’s principals headed to trial after parties fail to conclude it through “barrage of dispositive motions”

November 16, 2010

Airlines Reporting Corporation v. Belfon (D. Virgin Islands Sept. 16, 2010).  World Wide Travel was formed in 1985 and was converted from the Agent Reporting Plan to the ARC program in 1999.  In 2001, WWT began to report sales late, fail to report sales and to other otherwise breach its remittance-related obligations under the Agent … More Long-pending ARC case against agency’s principals headed to trial after parties fail to conclude it through “barrage of dispositive motions”

Appeals court upholds temporary injunction against frequent flyer mileage brokers

March 8, 2009

Frequent Flyer Depot, Inc., George Pirkle and Robert Pirkle v. American Airlines, Inc. (Tex. Ct. App. Feb. 26, 2009).  American’s AAdvantage frequent flyer program prohibits the purchase or sale of the program’s mileage credit or award tickets and makes such mileage or tickets void if transferred for cash or other consideration.  American sued Frequent Flyer … More Appeals court upholds temporary injunction against frequent flyer mileage brokers

Virginia ruling returns to haunt ARC’s collection efforts against agency owner in California

September 21, 2008

Airlines Reporting Corporation v. Commercial Travel Corporation (S.D. Cal. Aug. 1, 2008).  In 2004, ARC was pursuing two separate lawsuits in the U.S. District Court for the Eastern District of Virginia in which Mario Renda was a defendant, ARC v. Uniglobe Fairway Travel, Inc. and ARC v. Commercial Travel Corporation.  In both cases, ARC alleged that … More Virginia ruling returns to haunt ARC’s collection efforts against agency owner in California

Airline battles frequent flyer mileage brokers in federal court

May 26, 2008

Alaska Airlines, Inc. v. Carey (W.D. Wash. Apr. 15, 2008).  The terms and conditions Alaska Airlines’ frequent flyer program, known as the Mileage Plan, prohibit its members from selling, purchasing or bartering miles or award tickets, and they state that miles and award tickets “are void if transferred for cash or other consideration.” In 2007, Alaska Airlines filed … More Airline battles frequent flyer mileage brokers in federal court

Court decisions highlight need to clarify important Agent Reporting Agreement provision

March 16, 2008

Westways World Travel, Inc. v. AMR Corp., American Airlines, Inc. et al. (9th Cir. (Cal.) Jan. 22, 2008).  Despite consisting of over 70 pages, ARC’s Agent Reporting Agreement contains very few provisions that give airlines specific rights against ARC-accredited travel agents.  Most of the airline-protective provisions are in ARA Section VII, which is entitled “Agent’s Authority, General Rights … More Court decisions highlight need to clarify important Agent Reporting Agreement provision

ARC seeks court confirmation of arbitration award against agency

November 30, 2007

Airlines Reporting Corporation v. Versailles, LLC (E.D. Va. Nov. 26, 2007).  ARC has filed a petition seeking the confirmation of an arbitration award in its favor against Versailles, LLC, a travel agency that does business as Business Travel International and is located in Irvine, California. According to ARC’s petition, the agency had filed an appeal with … More ARC seeks court confirmation of arbitration award against agency

Magistrate judge recommends that ARC obtain default judgment against agency and owner

October 20, 2007

Airlines Reporting Corporation v. PVO Travel Corp. and Pete Victor Obuljen (E.D. Va. Sept. 27, 2007).  As previously reported, ARC filed a lawsuit against PVO and Obuljen, the agency’s sole owner, for unreported sales and dishonored drafts.  The defendants failed to respond to the complaint, so ARC moved for a default judgment. The magistrate judge … More Magistrate judge recommends that ARC obtain default judgment against agency and owner