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

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”

Federal court slices, dices and dismisses ticket-related complaint on subject matter jurisdiction grounds

Onyiuke v. Cheap Tickets, Inc. & Virgin Atlantic Airways Limited (D.N.J. Dec. 31, 2009).  In August 2008, the plaintiff purchased a ticket, through CheapTickets.com, for roundtrip travel from Newark Liberty International Airport to Lagos, Nigeria, connecting in Gatwick Airport.  The first segment was to be on a Continental flight in mid-December 2009, and the connecting flight … More Federal court slices, dices and dismisses ticket-related complaint on subject matter jurisdiction grounds

Passenger price-fixing case dismissed on subject matter jurisdiction grounds

McLafferty v. Deutsche Lufthansa A.G. et al. (E.D. Pa. Oct. 16, 2009).  In her class action complaint, the plaintiff alleged that Lufthansa, Air France, KLM and Alitalia had engaged in price fixing in violation of the Sherman Act.  She alleged that, at a 2003 IATA meeting, the airlines agreed to impose surcharges on fares for passenger … More Passenger price-fixing case dismissed on subject matter jurisdiction grounds

Appeals court upholds temporary injunction against frequent flyer mileage brokers

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

ATPCO not liable to Alitalia for fare coding mistake

Alitalia Linee Aeree Italiane, S.p.A. v. Airline Tariff Publishing Company (S.D.N.Y. Sept. 5, 2008).  ATPCO serves airlines by collecting and distributing their fare data.  Over 500 airlines throughout the world send fare data to ATPCO, which electronically distributes such data to global distribution systems (such as Sabre, Amadeus/System One, Worldspan and Galileo) and computer reservation … More ATPCO not liable to Alitalia for fare coding mistake

Airline battles frequent flyer mileage brokers in federal court

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

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

Airline held liable to passenger for travel agent negligence

Rottman v. El Al Israel Airlines (N.Y. City Civil Ct. Jan. 14, 2008).  The parties in this case reprised a battle that has been fought in many passenger cases over the years:  whether a travel agent was acting as an agent of an airline or as an independent contractor when the travel agent sold the … More Airline held liable to passenger for travel agent negligence

First Circuit ruling confirms that “nonrefundable” tickets are totally nonrefundable

Buck v. American Airlines, Inc. (1st Cir. Mass. Feb. 7, 2007).  Some airline customers find it difficult to accept that their “nonrefundable” tickets are truly nonrefundable.  Some have filed lawsuits against airlines, but the courts routinely dismiss these claims as preempted by the federal Airline Deregulation Act (“ADA”), which prohibits the enactment or enforcement of … More First Circuit ruling confirms that “nonrefundable” tickets are totally nonrefundable

Airline not liable for downgrading passenger tickets

Sobol v. Continental Airlines (S.D.N.Y. Sept. 26, 2006).  Due to overbookings, the airline downgraded some of the first class tickets held by family members to coach class, causing the family to be separated during the international flights at issue. The family members alleged in their lawsuit that the separation caused them emotional trauma and stress, but no physical injury.  … More Airline not liable for downgrading passenger tickets