Category: Travel agent claims

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

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

Travel agents come up short in commission cap antitrust case against airlines

January 9, 2008

In re Travel Agent Commission Antitrust Litigation (N.D. Ohio Oct. 29, 2007).  The travel agent plaintiffs alleged in this case that the airline defendants had violated Section 1 of the Sherman Act (15 U.S.C. § 1) by conspiring to cap or eliminate travel agent commissions at certain times during the period from 1995 to 2002.  … More Travel agents come up short in commission cap antitrust case against airlines

Court confirms arbitration award in favor of “host agency”

January 9, 2007

Incentive Connection Travel, Inc. v. 1st-Air.Net Inc. (D. Ariz. Dec. 27, 2006).  The parties had entered into a contract in which ICT agreed to act as a “host agency” for 1st-Air.Net, an Internet-based travel broker.  According to ICT, 1st.Air-Net “is required to use host agencies because, among other reasons, United Airlines terminated its Sales Agreement . . . and the Airline [sic] Reporting … More Court confirms arbitration award in favor of “host agency”

Airline not liable under antitrust statutes by terminating agent agreement

October 21, 2006

Tokarz v. LOT Polish Airlines (E.D.N.Y. Oct. 3, 2006).  Despite repeated warnings by the airline, the agent continued to discount tickets by passing on front-end override commissions to customers, a practice that violated the parties’ written commission agreement.  After several competing agents complained to the airline about the discounting agent, the airline exercised its right to terminate the agreement with the discounting agent.  The terminated agent sued, alleging that … More Airline not liable under antitrust statutes by terminating agent agreement