Newspaper article St Louis Post-Dispatch (MO)

Twa Alters Fee Plan, Wins Go-Ahead

Newspaper article St Louis Post-Dispatch (MO)

Twa Alters Fee Plan, Wins Go-Ahead

Article excerpt

The Justice Department on Wednesday backed down from its threat to scuttle the settlement of a lawsuit between Trans World Airlines Inc. and travel agents after the airline eliminated two provisions federal regulators had said were anticompetitive.

The changes clear the way for TWA to set itself apart from rival air carriers and to bolster its relations with travel agents.

In February, the nation's major airlines announced they would put a $50 cap on the commissions they paid to travel agents for round-trip tickets.

Travel agents, who had been paid commissions of at least 10 percent of the cost of a ticket, were furious. And the American Society of Travel Agents, a trade group, responded by suing seven airlines, including TWA.

In early May, TWA and the agents reached a tentative settlement under which TWA would be dropped from the suit.

Justice Department officials then raised concerns about two sections of TWA's agreement with the travel agents: one in which TWA promised to pay 10 percent commmissions until Sept. …

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