OP ED: Agent As Buyer Advocate At Risk

<I>TWA is suing Omega World Travel for marketing discounted tickets issued by ex-TWA owner Carl Icahn's Global Discount Travel Services. A judgement is expected in late summer. (See story).</I>

The future of the relationship between travel agents and consumers will soon be decided in a St. Louis courtroom. Omega World Travel is defending the public's right to receive the lowest available airfares. At stake is the value of the travel agent as an independent advocate for the traveling public.

TWA's legal department initiated litigation against Omega to deflect criticism for signing the poorly drafted "Karabu Agreement" with former TWA owner Carl Icahn. The agreement, a result of the settlement between TWA and Icahn of a $190 million debt, authorized Icahn to sell TWA airlines tickets at a substantial discount. TWA did not anticipate Icahn's aggressive marketing of these tickets to the general public nor the widespread consumer acceptance of the discount program. After leading consumer publications pointed out that these tickets were a good deal for the general public, TWA asserted that Icahn had misinterpreted the agreement. Instead of immediately attempting to stop Icahn from issuing tickets, however, TWA sidestepped legal entanglement with the formidable Icahn and opted to first pursue the smaller agencies that provide the benefits of the program to the public.

TWA claims that Omega somehow violated the Airlines Reporting Corp. agreement, even though Icahn's company actually issued the tickets, received payment and forwarded the tickets to customers. Omega insists that the ARC agreement is not applicable to transactions where tickets are issued by third parties such as tour operators, cruise lines or consolidators like Icahn's company.

Omega has ardently supported TWA for 25 years and has never acted to harm this carrier. Omega was shocked when TWA, without verbal or written notice, issued a libelous press release and filed a lawsuit in February 1996. The lawsuit is an indirect attack against Icahn and a calculated message to all travel agencies: Do not offer Icahn's discount tickets to your clients.

While Omega's legal defense mirrors the majority industry position, TWA has several advantages in this case. It has two of the largest law firms in the country with virtually unlimited legal resources. TWA also anticipates a sympathetic hearing in its hometown of St. Louis, where TWA is the largest industry and employer.

Omega believes that travel agencies must remain loyal to the consumer and fully disclose all low price and service options. TWA seeks to limit the ability of travel agencies to inform the consumer. If TWA prevails, travel agencies will become virtual pawns of the airlines to the detriment of the consumer. The availability of low-fare outlets also would be reduced or eliminated. Finally, a decision favoring TWA could render useless and illegal thousands of tickets distributed by more than 200 travel agencies to business and leisure travelers.

Despite the unprovoked attack initiated by TWA's maverick legal department, we fully support TWA and its employee owners in their struggle to return the carrier to its former status in the industry. Regardless of the outcome of this trial, Omega will continue to defend the rights of the consumer as well as fellow travel agencies seeking to offer consumers the best price and service options available.

<I>Daniel Bohan is chief operating officer of Omega World Travel.