P.M. BRIEFING : Delta Threatens More Suits Over Sales of Frequent Flier Coupons
Spokesmen for Delta Air Lines said today it may file more suits against travel companies that sell its frequent flier coupons because the airline wants to stamp out the increasingly widespread practice.
Delta announced Tuesday that it was suing Travel Creations Inc., a broker based in Atlanta, for violations of the state and federal Racketeer Influence and Corrupt Organizations Act.
The airline is alleging the company bought airline tickets Delta issued for free under the frequent flier program and then sold them to third parties. Delta said it has 5 million passengers enrolled in its frequent flier program, which awards passengers who fly the airline often with coupons that can be turned in for free tickets.
It is the first suit Delta has filed against a coupon broker but not the first in the industry. An Arizona company, the Coupon Connection, filed for bankruptcy in July and blamed its problems in part on an ongoing lawsuit filed against it by American Airlines.
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