ARLINGTON, Va. -- ARC's board of directors set June 4 as the
starting date for a new process that would limit the window in
which travel agents can void certain air ticket sales transactions.
ARC's management had originally proposed an April 30 start, but
pushed back the date to June 4 to address concerns raised by agent
representatives during several advisory board or JAB-ARA meetings,
particularly over the last three weeks.
In approving the starting date, ARC determined it would be
unable to satisfy an ASTA request for "mutuality." That's the
Society's term for establishing a procedure that would curtail the
airlines' ability to issue certain waivers, thereby holding them to
the same voiding restrictions ARC intends to impose on agents.
ARC, citing technological limitations, determined it would be
"virtually impossible" to ensure such restrictions on the
airlines.
Instead, ARC said it will compile and publish a list of
airlines' "no waiver" policies, including information on procedures
for agents to "obtain exception authority."
ASTA officials contacted by TravelWeekly.com declined to comment
pending a review by the Society's board of directors.
ARC officials, who held a telephone press conference March 19,
the day following the ARC board meeting, explained that under the
new voiding process, transactions could be voided up to 48 hours
after the date of sale.
The new process would allow certain changes to refunds,
exchanges and adjustment documents, as well as changes and
exchanges related to MCOs, after the void window closes.
ARC said it also will prepare a statement that travel agents can
share with their clients to clarify that ARC -- and not agents --
is implementing the new void process.
ARC officials reiterated their contention that the new voiding
process was needed to plug procedural loopholes that they say
certain agents have exploited to defraud the airlines of millions
of dollars.
In some instances, ARC officials said, ARC audits indicated that
some agents were apparently accepting cash payments for air tickets
sales that they would later void and then keep the money.
ARC estimates the misuse of voids cost the airlines as much as
$70 million last year alone.