WASHINGTON -- ARTA's board of directors voted unanimously Monday to
reject an offer floated by Lufthansa Airlines that would permit the
carrier to settle claims against it in the Sarah Hall commission
class-action suit.
The offer calls for the creation of a performance-based
incentive program and makes the airline's Web fares available to
agents.
Under the settlement proposed by Lufthansa, the carrier will
create the Lufthansa Transatlantic Bonus Program, which enables all
agencies that don't have a contractual relationship with Lufthansa
to earn up to a $100 bonus for each Lufthansa transatlantic
roundtrip ticket sold beginning Jan. 1, 2004.
"This is really not a deterrent. It is a sales promotion," ARTA
president John Hawks said. ARTA intends to file a motion in court
opposing the deal. Sarah Hall, the owner of Wilmington, N.C.-based
Travel Specialist, initiated the lawsuit against the carriers in
December 1999.
Later, three ARTA members signed on as co-plaintiffs. Hall
"understands where we are coming from, but will continue to support
[the deal]," Hawks said.
But as for ARTA members, "Above everything else, we want our day
in court," he said, adding that it is unlikely ARTA would approve
any deal to settle the case.