Airline Commission Conspiracy Case Dismissed

Update March 2010: The travel agents have petitioned for certiorari in the U.S. Supreme Court.

In In re: Travel Agent Commission Antitrust Litigation, 6th Circuit Court of Appeals has upheld a dismissal of a suit for failure to state a claim under Section 1 of the Sherman Act, brought by travel agents accusing major airlines including Delta Airlines Inc., United Airlines and American Airlines Inc. of fixing commission prices.  The plaintiffs, owners of 49 travel agencies, alleged that 1) they received commissions known as “base commissions” from airlines that were commonly a percentage of the ticket price; and 2) the airlines acted in conspiracy to impose uniform cuts on their base commissions over a seven-year period, evidenced by several specific meetings where the airlines had an opportunity to conspire and agree to set commissions.  In affirming the dismissal of the suit, the appeals court found that these allegations did not raise sufficient expectations that discovery would reveal evidence of illegal agreements.

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