In pursuit of debit memo reform

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WASHINGTON -- Simon Weiser, owner of a small travel agency in Brooklyn, N.Y., believes that "the airlines are so powerful that they can turn you off for no reason."

Complaining that "nobody is policing" the situation, Weiser advocates legislation that would require an airline to go to arbitration before it could pull its plate from an agency or make an agency pay a contested debit memo.

As it stands now, he said, small agencies are helpless when being "abused" by the airlines. Weiser said he belongs to a local association in Brooklyn called Agents Get Together, and "everybody has the same concerns."

His agency, Weiser Travel, has been ARC-accredited since 1993 and does about $2 million in annual ARC sales, he said. As may be suspected, Weiser's call for arbitration stems from some personal run-ins with airlines.

For example, United and code-share partner Lufthansa pulled their plates from his agency about 14 months ago due to a dispute over a New York-Zurich, Switzerland, ticket.

When the ticket was issued about two years ago, the printer was down that day, so the agency hand-wrote the ticket, he said.

Weiser admitted the ticket had "a few errors" because he plated on United even though it was a Lufthansa flight. "I thought that was OK because they code share," he said.

Later, the client altered the name, destination and price on the flight coupons, he said. "I was shocked. I didn't even know that was possible," he said.

United accused his agency of fraud, he said. "They didn't even send a debit memo. They just pulled their plate," he said, adding that Lufthansa followed suit.

Weiser said he sent United many letters explaining his side and submitted an affidavit from the client, who admitted altering the coupons and stated that the agency was not involved.

He said he hired an attorney and spent a lot of money trying to resolve the situation, to no avail. "Nobody talks to you," he said.

In another incident, Weiser said he is obliged to pay $800 in debit memos to Delta by the end of the month in order to keep his Delta plate, even though he thinks the reason for the debit memos is invalid.

The problem started after he issued eight New York-Fort Lauderdale, Fla., tickets on Delta last November. The printer was down again, so the tickets were handwritten, he said.

About two months later he got debit memos from Delta for $4,633 (the difference between his fare and the Y fare) on the grounds that the fare he used didn't allow the routing on the tickets.

Weiser said he checked with Worldspan and found the fare rule did allow the routing when his tickets were issued, although the rule changed a week later.

He said he told Delta the fares were valid at the time, but "all they did was reduce [the debit memo for] each ticket to $100," leaving a total of $800 to be paid.

Weiser's proposal for mandatory arbitration goes beyond legislation (H.R. 2200) supported by ASTA that would require airlines to provide 90 days notice before pulling a plate and give the agency 60 days to correct the alleged deficiency.

The travel agent arbiter, William McGee, is empowered to hear disputes between individual ARC agents and airlines, and Weiser favored that forum.

But the airline must agree in writing to accept McGee's jurisdiction and treat his decision as binding. To date, no U.S. airline has done so.

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