NEW YORK -- Power Travel International of Plainview returned to
court this week, refiling a complaint against major U.S.
commission-cutting carriers.
In the complaint filed May 7, the retailer alleged that the
airlines had no right under their ARC agreements to eliminate base
commissions.
Power Travel told the court that the carriers owed all ARC
agencies compensation that at least equals the total costs incurred
by those agencies when they provided tickets to consumers.
The agency first filed its class action suit last summer. The
U.S. District Court in New York dismissed the case in April, but
the judge effectively said Power Travel has a valid case against
the carriers, based on language in the ARC agreement that presumes
agents will be paid something for their work.
The problem with the first filing was Power Travel's failure to
provide a clear damages claim, but the judge gave the agency 20
days to replead its case.
The defendant carriers are American, Continental, Delta, United
and Northwest.