AA Latest Carrier To Charge Inactive Segment Fee

American Airlines beginning March 1 will charge agencies $3.50 per segment and a $50 service fee for inactive segments that are not removed from passenger name records within 24 hours of a flight's departure.

"AA will audit all PNR transactions to identify noncompliant practices regarding inactive segments," American said in an alert on its agency site posted Thursday. American said it revised its policy to "reduce distribution costs and to be more consistent with industry practices."

Continental Airlines last year began enforcing a similar inactive segment policy, debiting agents $50 for violations. The American Society of Travel Agents alerted members that United Airlines in December had begun sending invoices to agencies for $3.50 per inactive segments. Meanwhile, US Airways last month began enforcing an "inappropriate booking practices" policy, which could result in charges and service fees to agents.

"This is all about carriers looking at how they can pass this cost back to people who are essentially creating it outside the airline's control," said Mike Premo, ARC vice president of marketing, sales and customer care. "From what we've heard from our agents, they're anxious to help the carriers avoid this. They don't want to do bad things, but they do want to get as good and timely information as they can to address this."

ASTA, meanwhile, this week in a member alert said it plans to file a complaint against ARC for collecting such fees on behalf of airlines, namely United. ASTA called the practice "unauthorized drafting of agents' account." However, ARC's Premo said, "Carriers use the banking relationship that ARC has with agencies to collect on these types of fees. So, we certainly think the carriers have the ability to do that under the agreements that are in place, ASTA doesn't agree, so I suppose this will end up going to arbitration of some sort."