Q:If a consolidator in a foreign country can
issue a ticket for less than we or domestic consolidators can, is
it legal for our agency to import the ticket and sell it to our
local client?
A: Yes, as long as the consolidator can
lawfully issue the ticket at the discount fare for your client.
With a few exceptions, such issuance is perfectly legal.
There are really three separate legal issues here:
First, is it legal for your agency to import, for resale to
your client, a ticket issued by a consolidator abroad?Second, is it legal for the foreign company to issue a ticket
for your U.S. client?Third, if not, is there a risk to U.S. agencies in dealing in
these tickets?The first issue is easy to answer: no treaty, statute,
regulation, court precedent, ARC rule, or Iatan rule prohibits U.S.
agencies from purchasing tickets from third parties, including
foreign companies.
Further, there is absolutely no prohibition on importing a paper
ticket for you to provide to your client.
Nevertheless, many agencies are afraid to engage in this
practice because they cannot find the lower fares in their CRS or
because they associate these purchases with scams such as
frequent-flyer program abuses.
However, all agencies should look for these bargains for their
clients, if time permits and if the deals offered by the foreign
companies are legal.
This brings us to the second, more difficult issue. The
applicability -- and hence legality -- of a particular fare depends
on the terms of the IATA fare resolution and tariff rules
applicable to sales in the country where the ticket is issued.
Most special deals apply to all travelers, regardless of
location. For example, residents of any country can take advantage
of intra-European discount fares available for sale only in
Europe.
On the other hand, as every agency knows, domestic "visit USA"
fares are sellable abroad only to non-U.S. residents.
Finally, there probably is some risk in large-scale importation
of foreign tickets issued in violation of IATA rules and tariffs,
as the offended airline could lift your plate.
In order to minimize the risk, you could rely on trusted
consortium suppliers abroad or subscribe to an Internet service
with foreign consolidator suppliers that have been screened for
tariff compliance.
Mark Pestronk is a Fairfax, Va.-based attorney specializing
in travel law. He answers your questions in the Crossroads Legal Issues forum. To contact Mark directly,
e-mail him at [email protected].