CSTAR Launches Class Action Suit Against Airlines

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Toronto, 13 May 2002: The Canadian Standard Travel Agent Registry

(CSTAR) announced today that it retained the law firms Lauzon B=E9langer =
of Montr=E9al and Poyner Baxter of Vancouver to file a class action =
lawsuit, which was filed today in Federal Court in Montr=E9al, against =
Air Canada, American Airlines, Delta Airlines, Continental Airlines, =
Northwest Airlines, United Airlines, and the International Air Transport =
Association (IATA).

The lawsuit, filed on behalf of Canada's 3700 accredited travel =
agencies, is in direct response to the Defendant carriers' reduction and =
elimination of base commissions as high as 10% due agents on the sale of =
domestic, transborder, and international air transportation in Canada.

The following are key allegations in CSTAR's case:

- CSTAR alleges that the Defendant airlines engaged in a conspiracy and =
collusion as early as 1995 to jointly agree to reduce and eliminate base =
commissions paid to Canadian travel agencies;

- CSTAR alleges that the Defendant airlines, along with their trade =
association, IATA, jointly agreed to amend industry agreements to lower, =
fix, stabilize, and eventually eliminate base commissions paid to =
Canadian travel agencies;

- CSTAR alleges that the Defendants' conduct violated Section 45 of =
Canada's Competition Act (R.C.S. 1985, C-34);

- CSTAR alleges that the Defendant airlines created airline-owned, =
online booking web sites known as Orbitz, Hotwire and Destina, providing =
an opportunity to agree, combine, and conspire to impose collusively and =
collectively reductions in travel agent commissions, with the motive of =
excluding travel agents from the sale of airline tickets and redirecting =
the sale of airline tickets from travel agents to Defendants' web sites, =
thereby preventing travel agents from performing their traditional =
function of assisting consumers in finding the best and most convenient =
airfares;

- CSTAR alleges that Defendant IATA provided Defendant airline members =
with opportunity, facilitation, administration, and enforcement to =
prevent travel agents in Canada from earning base commissions on =
interline sales (sales involving the services of more than one airline =
on a given ticket) by imposing arcane and discriminatory ticketing =
practices which prevented other carriers from remunerating the travel =
agent.=20

CSTAR's allegations focus on the fact that by jointly moving from =
reduced base commissions to zero base commissions, the Defendant =
airlines conspired to methodically dismantle the travel agency =
distribution channel in a plan to exercise monopoly and/or dominant =
market power over both the operation and distribution of air =
transportation at their hubs and/or in their respective market areas.=20

CSTAR alleges that through the elimination of travel agencies, the =
Defendant airlines intended to force consumers to Defendant airlines' =
direct distribution channels via their call centres, web sites, and =
joint-airline web sites, thereby preventing consumers from accessing low =
fare and best routing advice from independent travel agents. CSTAR =
alleges that the result yielded higher prices for the consumer and less =
service.

CSTAR seeks entitlement to punitive, aggravated and exemplary damages in =
the circumstances which it has alleged.

CSTAR will have no further comment on this matter.=20



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