New York retailer to sue airlines
Wednesday, 03 Dec, 2002
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A travel agency in New York is suing several airlines for breach of contract for their decision to axe commissions last year.
Power Travel International of Plainview, New York, is taking the action against American, Continental, Delta, United and Northwest.
The lawsuit said the airlines breached an implied covenant of good faith and fair dealings when they scrapped commission and did not give reasonable notice so that agents could adjust to the new working environment.
The agency is seeking to recover commissions and other financial losses but is also arguing that the airlines had no right to eliminate commissions.
The carriers are defending the suit.
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