Air Carrier Sues Travel Agency on Discount Coupons

A travel agency on Friday was accused by American Airlines of improperly selling discount travel coupons under the carrier’s AAdvantage Program.

Late last month, the San Diego agency, Premier Travel, was sued by Trans World Airlines, which alleged violations of its Frequent Flight Bonus coupons.

Named in the $5-million American Airlines lawsuit were Premier Travel, its two principals, Eric Fuller and Jeff Rooney, and several related firms.

The airline, which alleged breach of contract, fraud, interference with prospective business advantage and unfair business practices, is asking for treble damages for violations of the Racketeer-Influenced and Corrupt Practices Act.

The lawsuit claims that the AAdvantage Program--whereby passengers are rewarded with free airline tickets after accumulating a certain number of paid miles--can only be used by the passenger named on the discount certificate. The certificates are void if sold for cash, according to the lawsuit.

Premier reportedly generated $1 million in revenues per month between December and May by purchasing the coupons from various airline passengers and then selling them to other passengers.

In its lawsuit, American said that an audit revealed that Premier and several related entities issued more than $1.2 million worth of tickets “for which they had failed to pay American.”

In a brief interview Friday, Fuller said he hadn’t yet seen the lawsuit and that he didn’t “understand why this suit is being waged in the press and not in the court.”

“We conduct business ethically and lawfully, and we’re astounded at the measures taken by the airlines, which have only the result of hurting their own frequent flier programs.”