Lawsuit Could Impede Discount Ticket Availability

<I>St. Louis</I> - Testimony is over in a lawsuit between TWA and Fairfax, Va.-based Omega World Travel which could have a major impact on the relationships among travel agencies, airlines, consolidators and corporate accounts.

The case, which will be decided in about three months and most likely appealed by the loser, seeks to determine whether Omega violated the ARC agreement for marketing tickets issued by consolidator Global Discount Travel Services. Global is a company owned by former TWA investor Carl Icahn, who was given the right to sell heavily discounted TWA tickets in lieu of payment on a $190 million debt owed him by TWA.

TWA is suing Omega for over $3 million. According to Omega, the airline is "using the industry as a scapegoat for their bad deal," said Dan Bohan, Omega's chief operating officer.

If TWA wins, observers believe the case would set a precedent whereby an airline can dictate which consolidators an agency can use. Said Bohan, "Corporate travel managers wouldn't be able to rely on their agency as an objective partner seeking the best deal for its customer."

According to sources, corporations are using consolidator tickets more than ever. Bohan said half of his corporate clients--mostly smaller firms--purchase them.

Asked for comments on the suit, a TWA spokesman said "we're confident the judge will rule in our favor.