ASTA not buying ARC's fraud rationale

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WASHINGTON -- ASTA sent a letter to ARC reiterating its contention that new rules to limit the void window on airline ticket sales are unnecessary.

ARC, which will implement the new policy June 4, contends that a limit on voids is necessary to stem what it views as a growing problem of travel agents fraudulently voiding airline tickets.

In a statement, ASTA said, "The agency community remains skeptical about the anti-fraud rationale."

ASTA, as part of ARC's joint advisory board, played a role in negotiating certain modifications to make the rules more palatable to agents, but the Society maintains that, even with the modifications, the policy is not needed.

"We are not agreeing to what they propose. It is a grudging compromise," said Paul Ruden, ASTA staff senior vice president for legal and industry affairs.

"We do not think the fraud rationale that [ARC has] put forward is really the basis of this. And these changes are not going to have the effect they predict they will have on fraud cases."

Ruden said that although ASTA would prefer the current void window remain unchanged, the months of meetings with ARC over void rules produced some positives.

For instance, he said, ARC delayed the start for the new void rules from April 30 to June 4.

"We also narrowed [the new rules] down to just straight sales," Ruden said. "MCO and exchanges still can be modified. Those are pretty good outcomes."

Meanwhile, ARC began sending e-mail notices to travel agents explaining, and in some cases clarifying, the new procedures.

ARC originally had stated that under the new guidelines, the voiding of airline tickets through the GDSs would be limited to the day of the transaction and up until midnight of the day following the transaction, with an additional 24 hours for making changes in IAR Interactive Plus, ARC's Internet-based reporting system.

That could have left the impression that agents using IAR would have an additional 24 hours to void sales.

However, in the message e-mailed to agents, ARC said agents only will be able to use IAR to "verify" and alter, if necessary, what they did in the GDS.

According to ARC, "This additional day is not for customers to decide to change or cancel their reservation, it is only meant for agents to verify accuracy in IAR."

An ARC spokesman said, "Say you are approaching 48 hours after the sale and something is wrong" because the data wasn't transferred from the GDS.

The extra 24 hours, he said, offers "an additional opportunity to rectify that."

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