Tuesday, January 18, 2011

Travel agents get rejected by the U.S. Supreme Court!

Travel agents across the nation had taken a case all the way to the U.S. Supreme Court which the Court ruled in favor of Airlines.  These very travel agents went back at it again but the justices left intact a federal appeals court ruling that threw out an antitrust lawsuit by the owners of 49 travel agencies.  The travel agencies are upset claiming that airlines are slashing commissions on airline sales too low.

(The U.S. Supreme Court)

The U.S. Supreme Court said the allegations in the complaint weren’t sufficient to suggest that the airlines had reached an illegal agreement amongst themselves to screw over  travel agencies in some sort of a bulk commission reductions conspiracy.

When an agency sold an airline ticket before 2002,  it received a sales commission based on a percentage of the airline ticket price.  But in recent years they've all but done away with this system leaving less money for travel agencies.

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