WASHINGTON -- After spending nearly a year trying to resolve a
dispute with American over debit memos, Travel Incorporated of
Raleigh, N.C., paid the airline $514.38 rather than lose its
plate.
The dispute boiled down to how to fill out the tour code box on
tickets for a 21-person group and a large meeting of more than 200
people in the Caribbean last year.
When the agency started ticketing, it discovered that American
wanted the AN number, which identified the group, to be placed in
the tour code box. But the IT number, which entitled the agency to
11% commission, also was supposed to go in the same box, and both
numbers wouldn't fit.
The agency said it went to great pains and made numerous calls
to get information from American, even asking for a written example
on how to place both numbers in the box.
At one point, the agency said, someone on American's group desk
asked, "What's an IT number?"
Eventually, Travel Incorporated received instructions from
American to run the two numbers together, without separating them
with the letters "IT," and squeeze in as much of the IT number as
possible. It was the absence of the letters "It" that triggered
$1,028,76 in debit memos for incorrect formatting on the first
batches of tickets issued. The agency quickly learned to put the
letters on the rest of the tickets.
The agency said it wrote American explaining the problem with
the debit memos, but received only form letters that did not
address the issue.
Finally, after American threatened to terminate its appointment,
the agency convinced the carrier's group desk to absorb half the
amount.
"We paid the $500 to stop them from pulling our plate," said
agency vice president Scott Reidenbach, describing the debit memos
as the most "absurd" thing that he's seen during his 10 years in
the business. "It was ridiculous. It's taken so much time, and
caused us a huge amount of stress."
"This agency was not trying to take any money from American
Airlines that we weren't entitled to. We put the numbers down the
way we were told," Reidenbach said. Reidenbach, an ARTA member who
has three offices doing about $15 million in business, sent ARTA a
four-page memo about the situation as "an example of a pretty
flagrant abuse of power."
At ARTA's suggestion, he plans to discuss the matter with his
congressman, Rep. David Price (D-N.C.). "He's actually a customer,
so that helps," Reidenbach said.
Other major airlines, he said, recognize "that we make mistakes
but we haven't tried to cheat ... but not American. We're double
checking all American tickets now because we don't have the time to
spend hours chasing after debit memos," he said.
The agency is gearing up to ticket its 1998 groups to the
Caribbean. "The good news is that American no longer has IT
numbers. The bad news is that we earn only 8%," he said.
An American spokesman said the carrier is researching the
agency's complaint.