Delta Air Lines pursues alliances while rejecting associations

by Charlie Leocha on February 17, 2009

In a stark demonstration of the kinds of “negotiations” a beefed up airline alliance will demand, Delta Air Lines refused to open a dialog with the American Society of Travel Agents (ASTA) about a rash of credit memos, preferring to deal with individual agents.

Their point of view is clear. Having a system where the airlines can impose their will on travel agents, tour operators and consumers through strengthened alliances is good business. When it comes to dealing with their customers, divide and conquer is their preferred method of doing business.

According to Travel Weekly:

ASTA President Chris Russo said ASTA offered to open a discussion in order to reduce the level of conflict between Delta and agents.

“What we got in return was airline boilerplate language that translates to ‘It’s our way or the highway,’ ” Russo said. “No good will come of this, but for now Delta appears to be hostile to improving industry relations with agents.”

“From the many travel agent responses ASTA has seen, Delta’s approach is to respond to agents in a nameless, faceless, robotic way, often ignoring valid arguments an agent might make.”

In an original letter seeking a dialogue, Russo said, “We have even seen examples in which Delta’s own automated schedule change system has created booking violations that were beyond the agent’s control, yet Delta has nonetheless forcibly collected funds from the travel agent’s ARC bank account.”

These are shades of things to come should the airlines be allowed to consolidate via strengthened airline alliances. There is nothing good to come from the alliances for consumers, travel agents or tour operators. Make sure to let your representatives in Washington know your objection to approving the anti-trust immunity the airlines are seeking through their alliances.

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  • http://leftcoastsportsbabe.com Janice Hough

    No kiddiing. And by the way, these debit memos? For the layman a debit memo is a bill airlines send agents for breaking the rules. Delta is doing stuff like billing agents for making duplicate bookings…for examples like this. Someone calls up to book a reservation, they don’t ticket it or say they have decided not to go. Then they call back next week and make a similar reservation. Or they call and say, we want to go to a different city…. Delta is billing agents up to $50 per segment for this, saying it is fraudulent…. And this is just one example.

  • http://thevacationstop.com Steve Mencik

    And then they wonder why many travel agents now refuse to sell domestic airline tickets. The airlines pay no commissions (unless you have some kind of volume contract), yet expect you to pay them when you do what your client asks for (see Janice’s example). It simply is not worth the hassles involved.

  • MrBadExample

    Well I think the travel agents have some recourse here.

    Filing formal complaints with various state and federal agencies and contacting the media and their congressional representatives should provide an attitude adjustment.

    These actions further point to the need for an alliance of consumer groups, Travel Agents, Travel Industry Associations and other interested parties to represent the customer.

    Step one is for the travel agents in question to READ carefully their agreements with Delta and point out in writing any grey areas and asking DL for clarification in writing of their policies as they apply to EACH specific case. If they don’t respond in a timely fashion then it’s time to file fraud complaints and move on them in Small Claims Court.

    Enough agents stand up and take action in this manner along with reaching out to EVERY Chamber of Commerce in the US, Every BBB. In short don’t let the bastards breathe.

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