ASTA, AA spar over Sept. 11 debit memos: Travel Weekly

ASTA, AA spar over Sept. 11 debit memos

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WASHINGTON -- ASTA and American Airlines got into a war of words over the carrier's decision to issue debit memos to agencies that issued refunds to clients for flights canceled after the Sept. 11 attacks.

Reacting to what it called a flood of notices, ASTA described American as being "unrelenting" in its "pursuit of travel agents who provided refunds to clients for canceled flights."

But American shot back it was "appalled that ASTA would single us out for criticism."

An American spokesman said the airline's "policies were consistent with the industry, and we were much more generous than two of our largest competitors."

The verbal battle became public when ASTA issued a statement accusing American of providing agents with confusing information regarding refunds; flip-flopping on certain rules; and changing its policies several times in the days immediately following Sept. 11.

ASTA said American issued $200 debit memos to agents as "punishment" for aiding clients.

ASTA president Richard Copland said many agents received "verbal approval" from American to issue refunds to clients, only to find "at the end of the day, [American] dumped on us."

ASTA brought its grievances to American, arguing the $200 debit memos often exceeded the price of the tickets in question.

The spokesman admitted to Travel Weekly that the airline "made a mistake," but added, "we rectified it, and we have told them that. I don't know what [ASTA's] problem is."

He conceded the carrier "did change the dates [for reissuing tickets] three times in the 72 hours immediately after Sept. 11. But we were dealing with a crisis that was unprecedented. Under extremely difficult circumstances, we were trying to establish dates that were in the public's interest as well as our own."

The spokesman said American acknowledged the debit memos exceeded the price of some tickets, so it scaled penalties back to $129 and agreed to refund the difference.

"We've either issued [agents] a credit or are in the process of reducing the debit memo," he said.

But he defended American's decision to issue debit memos, saying it was in keeping with the carrier's long-standing policies for canceled flights.

Get More!

See Travel Weekly's Letters page in the March 4 issue for an agent's first-hand experience with the American debit memos and a response from the airline.

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